Pancor Corporation paid cash of $167,000 to acquire Sink Company’s net assets on February 1, 20X3. The balance sheet data for th
e 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 $ 257,000 $ 16,000 $ 16,000 Accounts Receivable 149,000 34,000 34,000 Inventory 175,000 44,000 48,000 Patents 86,000 44,000 57,000 Buildings & Equipment 388,000 327,000 144,000 Less: Accumulated Depreciation (182,000 ) (192,000 ) Total Assets $ 873,000 $ 273,000 $ 299,000 Liabilities & Equities Accounts Payable $ 79,000 $ 63,000 $ 63,000 Notes Payable 139,000 127,000 127,000 Common Stock: $8 par value 181,000 $6 par value 12,000 Additional Paid-In Capital 141,000 7,000 Retained Earnings 333,000 64,000 Total Liabilities & Equities $ 873,000 $ 273,000 Required: a. Prepare the journal entry recorded by Pancor Corporation when it acquired Sink’s net assets.