On January 4, 2015, Pronti Company acquired all of the net assets of Scott Company for $ 120,000 cash. The statements of financial position for each company prior to the acquisition follow:

Required:
1. How much goodwill was involved in this acquisition? Show computations.
2. Record the acquisition by Pronti Company on January 4, 2015.
3. Prepare a statement of financial position immediately after the acquisition.

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Pronti Compan Scott Compan Statement of Financial Position at January 4, 2015 Assets Cash Property, plant, and equipment (net) $118,000 132.000 $250,000 $23,000 65,000 $88,000 Total assets Liabilities Shareholders' equity Common shares Retained earnings $27,000 $12,000 120,000 103,000 $250,000 40,000 36,000 $88,000 Total liabilities and shareholders equity