Packard Industries acquires all of the stock of Steamobile Company for \($20\) million in cash, and reports the acquisition as a stock acquisition on its own books. The balance sheet accounts of Packard and Steamobile, immediately prior to the acquisition, are as follows (in thousands):

Steamobile has previously unreported identifiable intangibles with a fair value of \($6\) million that are separately capitalized per ASC Topic 805.

Required

a. Prepare a schedule calculating the excess of Steamobile’s book value over acquisition cost, its allocation to Steamobile’s identifiable net assets, and the amount of the bargain gain.

b. Prepare a consolidation working paper to consolidate Packard and Steamobile at the date of acquisition.

c. Prepare the consolidated balance sheet at the date of acquisition, in good form.

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Current assets Fixed assets.. Accumulated depreciation. Goodwill.. Liabilities. Capital stock Retained earnings Accumulated other comprehensive income. Total.... Packard Book Value Dr (Cr) Steamobile Book Value Dr (Cr) Fair Value Dr (Cr) $ 35,000 $ 5,000 $ 3,000 500,000 150,000 140,000 (160,000) (40,000) 35,000 (215,000) (120,000) (121,000) (90,000) (35,000) (70,500) 5,800 500 (800) 0 0