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On $30$ June $20$X$9,$ Fey Ltd purchased a parcel of assets and liabilities directly from Pohler Ltd$.$

The cost of acquisition was $$140000$ cash.

The financial information of Pohler Ltd as at $30$ June $20$X$9$ is as follows:

Item Note Cost

$ Carrying amount

$ Fair value

$

Accounts receivable $600004000035000$

Inventory $700007000070000$

Equipment $800006500050000$

Patent $1--35000$

Accounts payable $(50000)(50000)(50000)$

Contingent liability $2--(10000)$

Net assets $160000125000130000$

Notes:

$1.$ The patent is an internally generated asset that does not qualify for recognition in Pohler$$s financial statement under AASB $138$ Intangible Assets. The fair value of the patent has been assessed at $$35000.$

$2.$ At $30$ June $20$X$9$ Pohler has a legal action pending relating to a damages claim made against them by a former client. No provision for settlement of this legal claim has been recognised in Pohler$$s financial statements in accordance with AASB $137$ Provisions, Contingent Liabilities and Contingent Assets, but the fair value of the liability for the purposes of AASB $3$ Business Combinations, has been assessed at $$10000.$

Required:

Assuming that the assets and liabilities of Pohler does not constitute a business, prepare the journals entries for the acquisition by Fey Ltd$.$

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