Acquisition and Eliminating Entries, Acquisition Expenses Pinnacle Corporation acquired all of Stengl Corporation's common stock by issuing 350,000 shares of $1 par common stock with a current market value of $8,000,000. Related accountants' and attorneys' fees were $300,000, paid in cash. The total book value of Stengl's shareholders' equity consists of capital stock of $160,000 and retained earnings of $1,440,000. Book values and fair values of Stengl's assets and liabilities are given below: Book Value Fair Value Cash and receivables $640,000 $640,000 Inventories 880,000 720,000 Plant assets, net 1,280,000 800,000 Current liabilities (800,000) (800,000) Long-term debt (400,000) (380,000) Totals $1,600,000 $980,000 In addition, Stengl has previously unrecorded identifiable intangible assets with a fair value of $960,000 that meet ASC 805 criteria for recognition. (a) Prepare the entry Pinnacle makes to record the acquisition on its own books. Enter numerical answers using all zeros (do not abbreviate to thousands or millions). General Journal Description Debit Credit Investment in Stengl 8,000,000 0 350,000 Common stock 7,650,000 Additional paid-in capital 300,000 0 0 300,000 0 0 (b) Prepare the working paper eliminating entries to consolidate the balance sheets of Pinnacle Corporation and Stengl Corporation at the date of acquisition. Enter numerical answers using all zeros (do not abbreviate to thousands or millions). ConsolidationJournal Description Debit Credit (E) Capital stock O O 0 O 0 0 (R) Long-term debt Identifiable intangible assets 0 O O 0 0 0 o Plant assets, net 0 Inventories 0 0 0 0