Problem 1-30 (Algo) Business Combination with Goodwill LO 1-5 Pancor Corporation paid cash of $158,000 to acquire Sink Company's net assets on February 1, 20X3. The balance sheet data for the two companies and fair value information for Sink immediately before the business combination were: Pancor Corporation Sink Company Balance Sheet Item Book Value Book Value Fair Value Assets Cash Accounts Receivable $ 253,000 156,000 $ 19,000 $ 19,000 34,000 34,000 Inventory Patents Buildings and Equipment Less: Accumulated Depreciation 180,000 81,000 395,000 (177,000) 41,000 41,000 Total Assets $ 888,000 Liabilities and Equities Accounts Payable Notes Payable Common Stock: $10 par value $8 par value $ 79,000 148,000 46,000 316,000 (187,000) $ 269,000 $ 61,000 128,000 $ 295,000 $ 61,000 128,000 55,000 146,000 192,000 15,000 Additional Paid-In Capital Retained Earnings Total Liabilities and Equities Required: 154,000 7,000 315,000 58,000 $ 888,000 $ 269,000 a. Prepare the journal entry recorded by Pancor Corporation when it acquired Sink's net assets. b. Prepare a balance sheet for Pancor Immediately following the acquisition. c. Prepare the journal entry to be recorded by Pancor if it acquires all of Sink's common stock for $158,000.