Manna ltd enters into a business combination with Noah Inc. in which Manna purchases all of the

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Question:

Manna ltd enters into a business combination with Noah Inc. in which Manna purchases all of the identifiable assets and liabilities of Noah Inc. To effect the business combination, Manna issued 50,000 of its common shares currently trading at $8.00 per share for all of Noah's net identifiable assets. Manna is considered to be the clear acquirer. Costs associated with the business combination are:
Legal, appraisal, and finders' fees $5,000
Costs of issuing shares
7,000
..........
$12,000
Balance sheet data for the two companies immediately before the business combination are below:

Manna ltd Book Value Noah Inc. Book Value Noah Inc. Fair Value

Cash $ 140,000 $ 52,500 $ 52,500

Accounts receivable—net 167,200 61,450 56,200

Inventories 374,120 110,110 134,220

Land 425,000 75,000 210,000

Buildings—net 250,505 21,020 24,020

Equipment—net 78,945 17,705 15,945

Total assets $1,435,770 $337,785

Current Liabilities $ 133,335 $ 41,115 $ 41,115

Non-current Liabilities ------------ 150,000 155,000
Common Shares 500,000 100,000

Retained Earnings 802,435 46,670

Total Liabilities and Shareholders' Equity $1,435,770 $337,785

Required:

-Calculate any goodwill created at the time of the business combination.
-Prepare the journal entries on Manna's books to record the business combination.
-Prepare Manna's balance sheet immediately after the business combination. Use an appropriate three line title.