I take it you want to keep the apps. Here's what to do:
1) Back-up the iPad 1 on iTunes (right click on iPad in the device menu and choose "Back-Up").
2) After it is finished, click "Restore" (which is located on the iPad 1 general info page in iTunes).
3) Once it restores the iPad, it will ask you whether you want to A) restore the iPad from a previous backup, or B) Set up as new iPad. Choose B.
4) You should now be looking at the iOS 5 set up screen-- go through it as normal.
5) Once you are taken back to the homescreen of your iPad, go into iTunes, and under applications choose the apps you want to sync. Do the same with movies, music, etc.
6) Hit apply, and it should sync (might take a while depending on amount of content).
7) Go into "Settings" on the iPad, "General", and change the name to whatever your daughter's name is, so it is easier to manage on iTunes. (This is optional, but probably a good idea).
8) You should be good to go. Eject the iPad and your done
