On January 1,20X7,Falcon Acquired the Net Assets of Intra for $3,400,000

Essay

On January 1,20X7,Falcon acquired the net assets of Intra for $3,400,000 with the issue of shares.The statement of financial position for Intra at the date of acquisition is shown below together with estimated of the fair values of Intra's recorded assets and liabilities.
Required:
What is the amount of goodwill to be recorded for this business combination?
Prepare the journal entry that Falcon will use to record the business combination.Prepare the statement of financial position for Intra on January 1,20X7 directly after the transaction is completed.Reconcile the book value of the retained earnings for Intra on December 31,20X6 to its balance on January 1,20X7.Explain any differences.