Viki Ltd, a supplier of snooker equipment, agreed to acquire the business of a rival company, Tamarah Ltd, taking over all assets and liabilities as at 1 June 2024. The price agreed on was $100 000, $50 000 was payable in cash and the balance by the issue to the selling company of 20 000 fully paid shares in Viki Ltd, these shares having a fair value of $2. 50 per share. The trial balances of the two companies as at 1 June 2024 were as follows. All the identifiable net assets of Tamarah Ltd were recorded by Tamarah Ltd at fair value except for the inventories, which were considered to be worth $25 000 (assume no tax effect) . The plant had an expected remaining life of 5 years. The business combination was completed at 1 June 2024 and Tamarah Ltd went into liquidation. Viki Ltd incurred incidental costs of $2 500 in relation to the acquisition. Costs of issuing shares in Viki Ltd were $5 000.
a) Prepare the journal entries in the records of Viki Ltd to record the business combination.
b) Show the statement of financial position of Viki Ltd after completion of the business combination.