On January 4, 2018, 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, 2018.3. Prepare a statement of financial position immediately after the acquisition.

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Statement of Financial Position at January 4, 2018 Pronti Company Scott Company Assets Cash Property, plant, and equipment (net) Total assets $118,000 $23,000 132,000 65,000* $250,000 $88,000 $ 27,000 Liabilities Shareholders' equity Common shares Retained earnings Total liabilities and shareholders' equity $12,000 120,000 40,000 103,000 36,000 $250,000 $88,000