Pindar Corporation acquired all the outstanding stock of Strauss Company for $23,000,000 on

January 1, 2020. On the date of acquisition, Strauss had the following balance sheet:

Strauss Company

Balance Sheet

January 1, 2020

Required:
1. Calculate the amount of goodwill.
2. Prepare the journal entry by Pindar to record the acquisition.
3. Assume that instead of acquiring all the outstanding common stock of Strauss, Pindar acquired 100% of Strauss' net assets. What would Pindar's journal entry be in this case?

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Liabilities Accounts payable Notes pa yable Assets Accounts receivable $ 6,800,000 $ 2,000,000 8,000,000 S10,000,000 Inventory Total liabilities Property, plant & equipment (net) 16,300,000 Stockholders' Equity Common stock Additional paid-in capital- common stock Retained eamings Total stockholders'equity Total liabilities & stockholders' equity $ 2,000,000 8,000,000 7,800,000 $17,800,000 Total assets $27,800,000 $27,800,000