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 $$8\mathrm{.}00$ per share for all of Noah$$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 Fair Value

Cash

$ $140,000$

$ $52,500$

$ $52,500$

Accounts Receivable

$167,200$

$61,450$

$56,200$

Inventory

$374,120$

$110,110$

$134,220$

Land

$425,000$

$75,000$

$210,000$

Buildings $($at net$)$

$250,505$

$21,020$

$24,020$

Equipment $($at 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. $(2$ marks$)$

Prepare the journal entries on Manna's books to record the business combination. $(7$ marks$)$

Prepare Manna's balance sheet immediately after the business combination. Use an appropriate three line title. $(6$ marks$)$