Eliminating Entries, Bargain Gain Phelps, Inc. acquires all of the stock of Skelton Company by issuing 1 milion shares of its capital stock with a fair value of $18/share. At the date of acquisition, Skelton's current assets had a book value of $5 million and a fair value of $4 million, its noncurrent assets had a book value of $45 million and a fair value of $25 million, and its liabilities had a book value of $20 million, which approximated fair value Skelton also has previously unreported identifiable intangibles, valued at $12 million, that meet ASC Topic 805's criteria for recognition. Skelton's shareholders' equity consists of capital stock of $38 milion and a retained loss of $8 million (debit balance). Required a. Calculate the gain on acquisition and prepare Phelps' journal entry to record the acquisition on its own books. Enter answers in millions. Description Investment in Skelton Cash Gain on acquisition Debit Credit b. Prepare the eliminating entries necessary to consolidate the balance sheet accounts of Phelps and Skelton at the date of acquisition Enter answers in millions. Ref. Description Captal stock Debit 25 M Credit Retained earnings vestment in Sko identiate intangibles 20M OM vestment Skelton, ON Current 0~ ON Noncurrent iets