Practice Exam 3 blank - 1 Practice Exam 3 Question 1(4...

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1 Practice Exam 3 Question 1 (4 marks) Bob the Builder Ltd acquired the assets listed below from Scoop Pty Ltd in exchange for 100,000 shares in Bob the Builder Ltd. At the date of the transaction the shares of Bob the Builder had a market value of $1.50 each. Bob the Builder also incurred $20,000 legal fees in relation to the transaction. Assets Book Value at Acquisition Date Fair Value at Acquisition Date $ $ Bulldozer 70,000 40,000 Truck 10,000 30,000 Land & Building 90,000 50,000 Bob the Builder Ltd plans to continue using these assets to provide bulldozing services. Assume these assets constitute a business. Required Prepare the journal entries to record the acquisition of assets by Bob the Builder Ltd Accounts Debit $ Credit $
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