Consolidating Eliminating Entries, Date of Acquisition: U.S. GAAP and IFRS

Plummer Corporation acquired 90 percent of Softek Technologies' voting stock on June 15, 2014, by issuing 1,200,000 shares of $2 par common stock with a fair value of $15,000,000. In addition, Plummer paid $300,000 in cash to the consultants and accountants who advised in the acquisition. Softek's shareholders' equity at the date of acquisition is as follows:

Common stock	$120,000
Additional paid-in capital	4,800,000
Retained earnings	3,000,000
Accumulated other comprehensive income	(480,000)
Treasury stock	(240,000)
Total	$7,200,000

Softek's assets and liabilities were carried at fair value except as noted below:

	Book Value	Fair Value
Plant assets, net	$7,200,000	$5,400,000
Trademarks	--	900,000
Customer lists	--	600,000
Long-term debt	1,200,000	1,260,000

The fair value of the noncontrolling interest is estimated to be $1,500,000 at the date of acquisition. (a) Prepare the acquisition entry on Plummer's books and the working paper consolidation eliminating entries on June 15, 2014, following U.S. GAAP.

Enter all your answers in thousands. For example, $1,000,000 is $1,000.

Plummer's acquisition entry

Drop down choices include:

Investment in Softek, Cash, Additional Paid in Capital, Goodwill, Gain on Purchase, Treasury Stock or Equity in Net Income - Softek

Consolidation eliminating entries

Drop down choices include:

Investment in Softek, Cash, Additional Paid in Capital, Goodwill, Gain on Purchase, Treasury Stock or Equity in Net Income - Softek

(b) Prepare the working paper consolidation eliminating entries on June 15, 2014, following IFRS and the alternative valuation method for noncontrolling interests.

Enter all your answers in thousands, round to the nearest thousand, when appropriate.

Drop down choices include:

Investment in Softek, Cash, Additional Paid in Capital, Goodwill, Gain on Purchase, Treasury Stock or Equity in Net Income - Softek

Please show work. Thank you thank you thank you!!!! :)

General Journal Description Debit Credit Merger expenses Common stock, par value Additional paid-in capital Consolidation Journal Description Debit Credit (E) Common stock Retained earnings Accumulated OCI Treasury stock Noncontrolling interest in Softek (R) Trademarks Customer lists Plant assets, net Long-term debt Noncontrolling interest in Softek Consolidation Journal Description Debit Credit (E) Common stock Retained earnings Accumulated OC Treasury stock Noncontrolling interest in Softek (R) Trademarks Customer lists Noncontrolling interest in Softek Plant assets, net Long-term debt