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On January 1 , 2014, Delta Inc. acquired 80% of Sigma Company's outstanding stock for $80,000 cash. Following are the balance sheets for Delta and Sigma immediately before the acquisition, as well as fair value information regarding Sigma's assets and liabilities: Sigma Company Delta Inc. Book Value Fair Value Assets 91,000 19,000 47,000 12,000 S 8000 15,000 31,000 5,.000 S 8,000 9,000 Cash Accounts receivable Inventory Land Plant and equipment, net 12,000 1,000 Total Liabilities and shareholders' equity S 35,000 Accounts payable Long-term debt Common stock 52,000 15,000 66,000 5,000 0,000 5,000 Dela -5,000 shares, $1.00 par Sigma 4,000 shares, $0.50 par Additional paid-in capital Retained earnings 2.000 12,000 30,000 Total Required 1. Prepare the entry Delta would make to record the acquisition of Sigma under the acquisition method. Use the amount paid by Delta for its 80% interest to impute the total fair value of Sigma at acquisition. 2. Calculate the amount of goodwill that Delta will record as a result of acquiring Sigma. 3. Provide the adjustment and elimination entries Delta would make to prepare the consolidated balance sheet immediately after the acquisition. 4. Prepare the consolidated balance sheet for Delta immediately after its acquisition of Sigma Company

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