Equity Method and Eliminating Entries, First Year On July 1, 2022, Prestige Communications acquired all of the voting stock of Southern Light Technologies for $300 million in cash. At the date of acquisition, Southern Light's shareholders' equity accounts were as follows (in millions): Capital stock Retained earning $26 142 Accumulated ether comprehensive income Treasury stock Total 5 $172 At the date of acquisition, Southern Light's inventories and property, plant and equipment had a fair value that was $2 million and $10 million lower than book value, respectively. It also had previously unreported brand names, valued at $60 million, meeting the ASC 805 criteria for separate capitalization Southern Light reports inventories using FIFO, its revalued plant and equipment had a 10-year remaining lide, straight-line, and the brand names are indefinite-lived. Both companies have June 30 year-ends. Southern Light reported $20 million in net income and $500,000 in other comprehensive income in fiscal 2023, and declared and paid $2.5 million in cash dividends. Impairment testing at the end of fiscal 2023 reveals that Southern Light's brand names are impaired by $3 million and goodwill connected with the acquisition is impaired by $5 million in 2023. Southern Light's beginning inventory was sold during fiscal 2023 Required a. Calculate equity in net income of Southern Light appearing on Prestige Communication's books, for fiscal 2023. Prestige uses the complete equity method to account for its investment Enter answer in thousands (example: $20 million equals $20,000 in thousands) (in thousands) b. Prepare Prestige Communications journal entries during 2023 to report its investment in Southern Light, on its own books b. Prepare Prestige Communications' journal entries during 2023 to report its investment in Southern Light, on its own books Enter all numerical answers in thousands (example: $300 million equals $300,000 in thousands). Description Debit Credit to record acquisition of Southem Light Equity in net income of Southern Light To recont equity in net income To record receipt of dividends c. Prepare the consolidation eliminating entries (C), ( (R) and (0), required to consolidate Prestige Communications' accounts with those of Southern Light Technologies at june 30, 2023 Enter all numerical answers in thousands (example: $2.5 million equals $2,500 (in thousands) Description O pulty come of Southern Light Debit Credit 00 Capal stock Retained earnings Investment in Southern Light Brand names Man and equipment.net Os impairment esses Pant and equipment net