Tina Ltd acquired all the assets and assumed all the liabilities of Tom Ltd on 1 July 2022. In exchange, Tina Ltd agreed to issue 3 Tina Ltd shares for every Tom Ltd share held and pay cash of $6.2 per share to the former shareholders of Tom Ltd for each share held in Tom Ltd. Tina Ltd and Tom Ltd shares were assessed to have a fair value of $7.5 per share and $6.5 per share, respectively.

On 1 July 2022, the financial position of Tom Ltd was as follows:

		Carrying amount	Fair value
Assets
	Cash	130,000	130,000
	Accounts receivable	520,000	520,000
	Plant	1,365,000	1,040,000
	Accumulated depreciation plant	(390,000)
	Equipment	585,000	552,500
	Accumulated depreciation Equipment	(65,000)
	Land	715,000	975,000
	Vehicles	520,000	396,500
	Accumulated depreciation vehicles	(130,000)
Total assets		3,250,000
Liabilities
	Accounts payable	65,000	65,000
	Bank Loans	260,000	260,000
Total liabilities		325,000
Equity
	Share capital - 100,000 shares	1,625,000
	Retained earnings	1,300,000
Total equity		2,925,000
Total liabilities and equity		3,250,000

Additional information:

The assets of Tom Ltd did not include a trademark that was valued by Tina Ltd at $15,000.

Tom Ltd had reported a contingent liability relating to a guarantee given by that company to another entity on 30 June 2022. Tom Ltd did not record the guarantee as a liability because of the difficulty of measuring the liability. The fair value of this contingent liability was assessed as $50,000.

Tina Ltd incurred $15,000 in costs in relation to accounting and legal fees in relation to its acquisition of Tom Ltd. Costs of share issue were $2,000.

Required:

Prepare the journal entries in the records of Tina Ltd in relation to its acquisition of Tom Ltd on 1 July 2022.