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  3. thomas ltd purchased from edison ltd the following

Thomas Ltd purchased from Edison Ltd the following parcel of assets and liabilities representing a...

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Accounting

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Thomas Ltd purchased from Edison Ltd the following parcel of assets and liabilities representing a business. In exchange for these assets and liabilities, Thomas Ltd issued 50,000 shares, and the fair value of each share at the acquisition date is $2.20. After the transaction, Edison Ltd continued in business otherwise unaffected. Cost ($) amount ($) Fair Carrying value ($) 10 000 7000 8 000 Accounts receivable Machinery Accounts payable 40 000 30 000 35 000 3 000 3 000 3 000 Additional information: Edison Ltd had not recorded an internally generated trademark. Thomas Ltd estimated the fair value of this trademark to be $60,000. Required: a) Prepare all necessary journal entries to record the above acquisition. (Using the provided journal entry template to enter your answer; workings/calculations or narrations are NOT required.) b) If the parcel of assets and liabilities does not represent a business, list any accounts that would be recorded in a) but should not be recognized anymore in Thomas Ltd's record. Explain the reason

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