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Westside Printing Limited was incorporated on 1 July 200A to take over the existing business of Bob's Printing. Net assets (other than cash) were taken over at fair value. The total consideration is $650,000. Consideration will paid in the form of $250,000 cash and the balance by issue of shares.
The following information related to Bob's printing immediately prior to the purchase.
Required: a) Calculate any goodwill or discount on acquisition
b) Record the journal entry to convert the business to a company
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