Week 9. Compatibility Mode - Word Search Layout References Mailings Review View Help Ink to ink to Shape Math Drawing Canvas Ink Replay Replay Drawing Tools Conven Insert Exercise 25.1 On 1 July 2020, Sonic Ltd acquired the following assets and liabilities from Screwdriver Ltd. Land Plant (cost $400 000) Inventories Cash Accounts payable Loans Carrying amount $ 300 000 280 000 80 000 15 000 (20 000) (80000) Fair value $350 000 290 000 85000 15 000 (20 000) (80 000) In exchange for these assets and liabilities, Sonic Ltd issued 100 000 shares that had been issued for $1.20 per share but at 1 July 2020 had a fair value of $6.50 per share. Required 1. Prepare the journal entries in the records of Sonic Ltd to account for the acquisition of the assets and liabilities of Screwdriver Ltd. 2. Prepare the journal entries assuming that the fair value of Sonic Ltd shares was $6 per share. SONIC LTD-SCREWDRIVER LTD Acquisition analysis: Net fair value of identifiable assets and liabilities acquired