At December 31, 2020, Pandora Incorporated issued 40,000 shares of its $20 par common stock for all the outstanding shares of the Sophie Company. In addition, Pandora agreed to pay the owners of Sophie an additional $200,000 if a specific contract achieved the profit levels that were targeted by the owners of Sophie in their sale agreement. The fair value of this amount, with an agreed likelihood of occurrence and discounted to present value, is $160,000. In addition, Pandora paid $10,000 in stock issue costs, $40,000 in legal fees, and $48,000 to employees who were dedicated to this acquisition for the last three months of the year. Summarized balance sheet and fair value information for Sophie immediately prior to the acquisition follows. Book Value $100,000 280,000 520,000 750,000 0 $1,650,000 $200,000 900,000 550,000 $1,650,000 Fair Value $100,000 250,000 640,000 870,000 500,000 Cash Accounts Receivable Inventory Buildings and Equipment (net) Trademarks and Tradenames Total Assets Accounts Payable Notes Payable Retained Earnings Total Liabilities and Equity $190,000 900,000 Required: Prepare Pandora's general journal entry for the acquisition of Sophie assuming Pandora's stock was trading at $35 at the date of acquisition and Sophie dissolves as a separate legal entity