(Exercise 3.3) Petrel Corporation acquires all of the stock of Samson Company for $30 million in cash. Samson's balance sheet accounts at the date of acquisition are listed below. Date-of-acquisition fair values for Samson's assets and liabilities are also displayed. Samson has previously unreported developed technology values at $6 million, meeting the criteria for capitalization per ASC Topic 805.

(in thousands) Book Value Dr (Cr) Fair Value Dr (Cr)

Cash $2,000 $2,000

Accounts Receivable $5,000 $ 4,500

Inventories $30,000 $15,000

Land, Buildings, and Equipment, net $320,000 $100,000

Trademarks $10,000 $150,000

Current Liabilities ($45,000) ($45,000)

Noncurrent Liabilities ($250,000) ($245,000)

Common Stock, $2 par ($1,000)

Additional paid in capital ($80,000)

Retained Earnings $5,500

Accumulated Other Comprehensive Income ($500)

Treasury Stock $4,000

Total $0

1. Required:
2. Prepare a schedule calculating the goodwill to be recognized for this acquisition

(b) Prepare the eliminating entries necessary to consolidate the balance sheet accounts of Prinin and Skoda at the date of acquisition