(Solution) - On January 4 2011 Penn Company acquired all 8 000 outstanding -(2025 Original AI-Free Solution)

Paper Details

On January 4, 2011, Penn Company acquired all 8,000 outstanding shares of Syracuse Company for $12 cash per share. Immediately after the acquisition, the balance sheets reflected the following:

Required:
1. Give the journal entry that Penn Company made to record the acquisition.
2. Analyze the acquisition to determine the amount of goodwill purchased.
3. Should Syracuse Company?s assets be included on the consolidated balance sheet at book value or market value? Explain.
4. Prepare a consolidated balance sheet immediately after acquisition.