Consolidated Balance Sheet Working Paper, Identifiable Intangibles International Auto (IA) acquires all of the stock of Genuine Parts (GP) and reports the acquisition as a stock investment on its own books. The acquisition involves the following payments. All amounts are in thousands. Cash paid to GP shareholders Cash paid to consultants and lawyers $10,000 2,4001 Fair value of new SA stock issued, 1,000 shares, $4 par 72,000) Stock registration fees, paid in cash Fair value of earnings contingency 1,800 500 The earnings contingency, if paid, will occur three years subsequent to the acquisition. The balance sheet accounts of GP and IA, just prior to the acquisition, are as follows: International Auto Book Value Genuine Parts Book Value Fair Value (in thousands) Current assets Foxed assets, net Trademarks Current liabilities Long-term liabilities Dr (Cr) $60,000 Dr (Cr) Dr (Cr) $2,000 $2,400 840,000 54,000 40,000 178,000 6800 12,000 (50,000) (800) (700,000) (52,000) (800) (50,000) Common stock, par value (16,000) (1,000) Addoonal paid in capital (220,000) (17,000 etained earnings 100,000) 4,000 Accumulated other comprehensive income (8,000) 2,000 Treasury stock 6,000 1,200 Total 50 10 intangible accat are identified. Note: Some of these intangible In addition to the assets reported on GPs balance sheet, the following previously unreported intangible assets are identified. Note: Some of these intangibles may not be separately capitalized per ASC Topic 805. (in thousands) Fair value Licensing agreements 14,000 Skilled workforce 30,000 Order backlogs 10,000 Future synergies between IA and GP supply chains 3,200 a. Prepare a schedule calculating the excess of acquisition cost over GP's book value, and its allocation to GP's identifiable net assets and goodwill.. When appropriate, use negative signs with your excess of fair value over book value answers (left column only). Do not use negative signs with answers in the right column.. Enter answers in thousands. Acquisition cost GP book value $ 82,500 10,000 $ 72.500 Excess of acquisition cost over book value Excess of fair value over book value Current assets Fixed assets, net 400 (14,000) Trademarks 5,200 Licensing agreements 0 4,800 Order backlogs 10,000 Long-term liabilities 2,000 8,400 Goodwill $ 64,100 Enter answers in thousands. (in thousands) Current assets Fixed assets, net Investment in GP Consolidation Working Paper Accounts Taken From Books International Auto Genuine Parts Dr (Cr) Eliminations Dr (Cr) Debit Credit 45,800 $ 840,000 2,000 (R) 54,000 400 Consolidated Balances Dr (Cr) $ 48,200 14,000 (R) 880,000 82,500 10,000 (E) O 72.500 (R) Trademarks 178,000 6.800 (R) Licensing agreements Order backlogs Goodwill Current liabilities Long-term abilities Common stock, par (50,000) (700,500) (20.000) (800) 152,000) (R) (1.000) (E) Additional paid-in capital 286,200 (17,000) () BBB 2388 15.2001 179,600 4,800 4,000 10,000 64,100 10,000 64,100 (50,800) 2,000 (752,500) 1,000 17.000 (20,000) 286,2001 Retained earnings (87,600) 4,000 4,000 () (79,600) AOCI (8,000) 2,800 2800() (2,400) Treasury stock 6,000 1,200 1,200() 8,400) Total 572,400 $ 0 104.500 $ 104.500 576,000 c. Prepare the consolidated balance sheet at the date of acquisition. Do not use negative signs with any of your answers below. Enter answers in thousands. International Auto and Subsidiary Consolidated Balance Sheet Date of Acquisition Liabilities Assets Current assets. Fixed assets, net Trademarks $ 48,200 Current liabilities 50,800 880,000 Long term liabilities 752.500 179,000 Total abilities 803,300 Other identifiable intangible assets Goodwill 33,200 64,100 Shareholders' Equity Common stock, par Additional paid-in capital Retained earnings 20,000 286.200 79.600 Accumulated other comprehensive income 5,200 Treasury stock 7.200 Total shareholders equity 308,200 Total assets $ 1,205,100 Total abilities and equity $ 1,201,500