• Sonic Enterprises Inc has decided to purchase 100% of the voting shares of Jackson Inc. for $325,000 in cash on May 1, 2022. On that date, just prior to the acquisition, the balance sheets of each of these companies were as follows:

	Sonic Inc	Jackson Inc
Cash and short-term securities	$750,000	$30,000
Inventory	60,000	20,000
Plant and equipment (net)	280,000	140,000
Total assets	$ 1,090,000	$ 190,000
Current liabilities	$150,000	$25,000
Bonds payable	120,000	30,000
Common shares	120,000	70,000
Retained earnings	700,000	65,000
Total liabilities and equity	$ 1,090,000	$ 190,000

On that date, the fair values of Jackson's assets and liabilities were as follows:

Cash and short-term securities	$28,000
Inventory	$22,000
Plant and equipment (net)	$180,000
Current liabilities	$25,000
Bonds payable	$15,000

 Sonic's book values approximated their fair values on that date. 

Required: Show your calculations a) Calculate the amount of goodwill arising from this combination. b) Prepare the journal entry to record Sonic's acquisition of Jackson's shares. c) Prepare Sonic's consolidated balance sheet immediately following its acquisition of Jackson's assets.