8 Not complete Marked out of 1.25 Eliminating Entries, Identifiable Intangibles Fag question Pringer Company acquires all of the stock of Stark, inc. for $114 million in cash. At the date of acquisition, Stark's equity consists of capital stock of $11 million, retained earnings of $81 million (credit balance), and treasury stock of $4 million. Stark's books report current assets of $44 million, property of $100 million, and liabilities of $176 million. Stark's assets and liabilities are reported on its books at amounts that approximate fair value, except that property with a book value of $55 million has a fair value of $48 million, and previously unreported identifiable intangible assets with a fair value of $33 million meet the requirements for capitalization per ASC Topic 805 Required Prepare working paper eliminating entries (E) and (R) to consolidate the balance sheet accounts of Pringer and Stark at the date of acquisition. Note: Provide all answers in millions ( To eliminate Stark's equity accounts against the investment account To revalue Stark's assets and liabilities to fair value Debit Credit earnir Additional Paid-in-Capital millio of $48 AOCI Requi Capital stock Prepa Goodwill Note: Identifiable intangible assets (E) Investment in Stark Merger expenses Property Retained earnings million in cash. At the date of acquisition, Stark's equity consists of capital stock of $11 million, retained million. Stark's books report current assets of $44 million, property of $100 million, and abilities of $176 amounts that approximate fair value, except that property with a book value of $55 million has a fair value assets with a fair value of $33 million meet the requirements for capitalization per ASC Topic 805 date the balance sheet accounts of Pringer and Stark at the date of acquisition Debit Credit (R) Treasury stock To revalue Stark's assets and liabilities to fair value