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 $12,000,000. 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 $240,000 and retained earnings of $2,160,000. Book values and fair values of Stengl's assets and liabilities are given below: Cash and receivables Inventories Plant assets, net Current liabilities Long-term debt Totals Book Value Fair Value $960,000 $960,000 1,320,000 1,080,000 1,920,000 1,200,000 (1,200,000) (1,200,000) (600,000) (570,000) $2,400,000 $1,470,000 In addition, Stengl has previously unrecorded identifiable intangible assets with a fair value of $1,440,000 that meet ASC 805 criteria for recognition. Required (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 0 0 0 0 Common stock 0 0 Additional paid-in capital 0 0 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). Consolidation Journal Description Debit Credit (E) Capital stock (R) Long-term debt Identifiable intangible assets Plant assets, net Inventories 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0