On June 10, 2014, Penn Company acquired all 8,000 outstanding shares of Soni Company for $ 12 cash per share. Immediately after the acquisition, the statements of financial position reflected below were available:

Required:
1. Prepare the journal entry that Penn Company made to record the acquisition.
2. Analyze the acquisition to determine the amount of goodwill purchased.
3. Should Soni Company€™s assets be included on the consolidated statement of financial position at their carrying amounts or at their fair value? Explain.
4. Prepare a consolidated statement of financial position immediately after acquisition.

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Penn Company Soni Statement of Financial Position at June 10, 2014 Assets Cash Investment in Soni Company Property, plant, and equipment (net) Total assets Liabilities Shareholders' equity Common shares Retained earnings Total liabilities and shareholders' equity $22,000 $23,000 96,000 132,000 $250,000 $27,000 65,000 88,000 $12,000 120,000 103,000 $250,000 40,000 36,000 $88,000