eliminating entries acquisition expenses pinnacle corporation acquired all of sten 384531

Eliminating Entries, Acquisition Expenses Pinnacle Corporation acquired all of Stengl Corporation’s common stock in an exchange of common shares with a current market value of $10,000,000. Related accountants’ and attorneys’ fees were $300,000. The total book value of Stengl’s stockholders’ equity consists of capital stock of $200,000 and retained earnings of $1,800,000. Book values and fair values of Stengl’s assets and liabilities are given below: book value fair value cash and receivables 800,000 800,000 inventories 1,100,000 900,000 plant assets, net 1,600,000 1,000,000 current liabilities (1,000,000) (1,000,000) long term debt (500,000) (475,000) In addition, Stengl has previously unrecorded identifiable intangible assets with a fair value of $1,200,000 that meet FASB ASC Topic 805 criteria for recognition. Required Prepare the working paper eliminating entries to consolidate the balance sheets of Pinnacle Corporation and Stengl Corporation at the date of acquisition.