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Problem 1: On 1 March 2017, Ann Ltd acquired all the assets and liabilities of Jill Ltd. In exchange for these assets and liabilities, Ann Ltd issued 20,000 shares and the fair value of each share at acquisition date was $2.80. Costs of issuing these 20,000 shares amounted to $5,000. Which of the following lines is correct for Ann Ltd to account for the costs of issuing the shares?
a. Dr Cash $5,000
b. Cr Share capital $5,000
c. Dr Acquisition-related expense $5,000
d. Dr Share capital $5,000
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