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u um IL SUUSIulary sequity accounts and revalues the parent's assets and liabilities to fair value Use the following information to answer questions 5-8 below. All amounts are in thousands. PR Company pays $10,000 in cash and issues stock with a fair value of $40,000 to acquire all of SX Cor noration's stock. SX will be a subsidiary of PR. Balance sheet accounts just prior to the acquisition areas follows, in trial balance format: PR Company Book value Dr (Cr) Current assets ...... Property, plant & equipment, net..... Identifiable intangible assets ..... Current liabilities. .. Long-term debt ... Capital stock ...... Retained earnings ....................... Accumulated other comprehensive income.... Treasury stock.. Total ......... $ 14,000 110,000 800 (13,000) (60,000) (44,400) (8,000) (200) 800 SX Corporation Book value Fair value Dr (Cr) Dr (Cr) $ 2,000 $ 4,200 10,000 6,000 4,000 14,000 (1,600) (2.000) (12,000) (11,600) (5,000) (8,000) 1,000 9,600 0 PR's consultants find these items that are not reported on SX's balance sheet: Fair value Potential contracts with new customers... Advanced production technology ........ Future cost savings ..... Customer lists .... $6,000 4,000 2,000 1,000 Outside consultants are paid $200 in cash, and registration fees to issue PR's new stock are $400. 3. Consolidated Financial Statements: Date of Acquisition 5. Total acquisition cost reported by PR (the debit to Investment on PR's books) is a $50,000 b. $50,200 c. $50,400 d. $50,600 6. On the consolidation working paper at the date of acquisition, elimination (E) credits the investment accom a. $ 2.400 b. $ 3,400 c. $ 5,000 d. $13,000 7. On the consolidation working paper at the date of acquisition, elimination (R) debits identifiable intangible assets by a. $10,000 b. $13,000 c. $15.000 d. $23,000 On the consolidated balance sheet at the date of acquisition, elimination (R) a. credits long-term debt by $400. b. debits long-term debt by $11,600. c. credits long-term debt by $11,600. d. debits long-term debt by $400