please assist

Identifiable Intangibles and Goodwill

Prince Corporation, a wholesale vehicle distributor, acquires all of the stock of Squire Service Corporation for one million shares of Prince stock, valued at $21 per share. Squire becomes a subsidiary of Prince. Professional fees connected with the acquisition are $720,000 and costs of registering and issuing the new shares are $600,000, both paid in cash. The balance sheets of Prince and Squire immediately prior to the acquisition are shown next.

Balance Sheets	Prince	Squire
Cash	$1,680,000	$180,000
Accounts receivable	3,600,000	1,620,000
Parts inventory	--	3,120,000
Vehicle inventory	9,000,000	--
Equipment, net	24,000,000	10,560,000
Total assets	$38,280,000	$15,480,000
Current liabilities	$3,000,000	$1,860,000
Long-term liabilities	15,000,000	5,160,000
Shareholders' equity	20,280,000	8,460,000
Total liabilities and equity	$38,280,000	$15,480,000

In reviewing Squire's assets and liabilities, you determine the following:

On a discounted present value basis, the accounts receivable have a fair value of $1,560,000, and the long-term liabilities have a fair value of $4,800,000. The current replacement cost of the parts inventory is $3,600,000. The current replacement cost of the equipment is $11,700,000. Squire occupies its service facilities under an operating lease with ten years remaining. The rent is below current market levels, giving the lease an estimated fair value of $750,000. Squire has long-term service contracts with several large fleet owners. These contracts have been profitable; the present value of expected profits over the remaining term of the contracts is estimated at $1,200,000. Squire has a skilled and experienced work force. You estimate that the cost to hire and train replacements would be $450,000. Squire's trade name is well-known among fleet owners and is estimated to have a fair value of $120,000.

(a) Prepare the acquisition entry and a working paper to consolidate the balance sheets of Prince and Squire as of the date of acquisition (in thousands).

Enter your answers in thousands. For example, $21,000,000 is $21,000 in thousands.

Use negative signs with your credit balance answers in the Dr (Cr) columns. Enter your answers in thousands. For example, $3,600,000 is $3,600 in thousands.

(b) If the acquisition was a merger, Prince records Squire's assets and liabilities directly on its own books. Prepare Prince's entry to record the merger, and compare Prince's balance sheet immediately after the entry is booked with the consolidated balance sheet in part a (in thousands).

Enter your answers in thousands. For example, $3,600,000 is $3,600 in thousands.

\begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ General Journal } \\ \hline Descrip & & Debit & Credit \\ \hline Investment in Squire & & 0 & 0 \\ \hline Merger expenses & & 0 & 0 \\ \hline Capital stock & & 0 & 0 \\ \hline Cash & & 0 & 0 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ (in thousands) } & \multicolumn{5}{|c|}{ConsolidationWorkirAccountsTakenFromBooks} & \multicolumn{4}{|c|}{ Eliminations } & \multirow[b]{2}{*}{ConsolidatedBalancesDr(Cr)} \\ \hline & & PrinceDr(Cr) & & SquireDr(Cr) & & Debit & & Credit & & \\ \hline Cash & $ & 0 & $ & 0 & & & & & & $ \\ \hline Accounts receivable & & 0 & & 0 & & & & 0 & (R) & \\ \hline Parts inventory & & & & 0 & (R) & 0 & 0 & & & 0 \\ \hline Vehicle inventory & & 0 & & & & & & & & 0 \\ \hline Equipment, net & & 0 & & 0 & (R) & 0 & 0 & & & 0 \\ \hline \multirow[t]{2}{*}{ Investment in Squire } & & 0 & & & & & & 0 & (E) & 0 \\ \hline & & & & & & & & 0 & (R) & \\ \hline Intangible: Lease & & & & & (R) & 0 & 0 & & & 0 \\ \hline Intangible: Service contracts & & & & & (R) & 0 & 0 & & & 0 \\ \hline Intangible: Trade name & & & & & (R) & 0 & 0 & & & 0 \\ \hline Goodwill & & & & & (R) & 0 & 0 & & & 0 \\ \hline Current liabilities & & 0 & & 0 & & & & & & 0 \\ \hline Long-termliabilities & & 0 & & 0 & (R) & 0 & 0 & & & 0 \\ \hline Shareholders' equity & & 0 & & 0 & (E) & 0 & 0 & & & 0 \\ \hline Total & $ & 0 & $ & 0 & & $ & 0$ & 0 & & $ \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ General Journal } \\ \hline Description & & Debit & Credit \\ \hline Cash & & 0 & 0 \\ \hline Accounts receivable & & 0 & 0 \\ \hline Parts inventory & & 0 & 0 \\ \hline Equipment, net & & 0 & 0 \\ \hline Intangible: Lease & & 0 & 0 \\ \hline Intangible: Service Contracts & & 0 & 0 \\ \hline Intangible: Trade Name & & 0 & 0 \\ \hline Goodwill & & 0 & 0 \\ \hline Merger expenses & & 0 & 0 \\ \hline Cash & & 0 & 0 \\ \hline Current liabilities & & 0 & 0 \\ \hline Long-term liabilities & & 0 & 0 \\ \hline Capital Stock & & 0 & 0 \\ \hline \end{tabular}