P5.3 Consolidation Eliminating Entries, Date of Acquisition Placer Company acquired a 75 percent sheets immediately prior to interest in Summer Company for $8,000,000 in cash. The condensed balance the acquisition are below Placer Summer Book value Book value Fair value in thousands) Inventories ntangibles .. $10,000 8,000 12,000 2,000 $ 2,000 3,000 5,000 1,000 $1,800 2,500 4,000 $32,000 $11,000 6,000 8,000 5,000 13,000 $2,500 5,000 500 3,000 $11,000 $2,500 4,900 Retained earnings... . Total liabilities and stockholders' equity... $32,000 Additional information: 1In addition to the above cash cost, out-of-pocket merger-related costs of $300,000 were paid in cash. 2 The merger agreement includes an earnings contingency agreement to be settled in cash; its fair value is $800.000. 3. It is determined that Summer has an unreported preacquisition contingency related to a pending lawsuit, consisting of a liability with an estimated present value of $400,000. 4. In-process research and development owned by Summer is worth $1 500.000. 5. The fair value of the 25 percent noncontrolling interest in Summer is $2,500,000 Required a. Prepare the acquisition entry made by Placer. b. Prepare the working paper eliminating entries to consolidate the trial balances of Placer and Summer at the date of acquisition