On June 1, 2017, Kappa Company acquired all of the net assets of Delta Company for $120,000 cash. The statements of financial position for both companies prior to the acquisition fallow:

Required

1. How much goodwill was involved in this merger? Show computations.2. Record the merger by Kappa Company on June 1, 2017.3. Prepare a statement of financial position immediately after the acquisition.

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Statement of Financial Position at June 1, 2017 Kappa Company Delta Company Assets Cash Property, plant, and equipment (net) $ 13,000 165,000* $176,000 352,000 $528,000 $178,000 Total assets $ 93,000 $ 82,000 Liabilities Shareholders' equity Common shares Retained earnings Total liabilities and shareholders' equity 250,000 65,000 185,000 31,000 $528,000 $178,000