Plummer corporation acquired 90 percent of Softek Technologies' voting stock by issuing 200,000 shares of $1 par common stock with a fair value of $100,000,000 In addition, Plummer paid $2,000,000 in cash to the consultants and accountants who advised in the acquisition Softek's shareholders' equity at eh date of the acquisition is as follows Common Stock $400,000 Additional paid in capital $20,000,000 Retained deficit $10,000,000 Accumulated other comprehensive loss $1,000,000 Treasury stock $500,000 Total $8,900,000 Softek's assets and liabilities were carried at fair value except as noted below Book Value Fair Value Plant assets, net $12,000,000 $6,000,000 Trademarks $ $2,000,000 Customer lists $ $3,000,000 The fair value of the noncontrolling interest is estimated to be $9,000,000 at the date of acquisition Required Prepare the acquisition entry on Plummer's books and the working paper consolidation eliminating entries at the date of acquisition, following US GAAP

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Posted on Sep 30, 2024

Plummer corporation acquired 90 percent of Softek Technologies' voting stock by issuing 200,000 shares of $1 par common stock with a fair value of $100,000,000.

Plummer corporation acquired 90 percent of Softek Technologies' voting stock by issuing 200,000 shares of $1 par common stock with a fair value of $100,000,000. In addition, Plummer paid $2,000,000 in cash to the consultants and accountants who advised in the acquisition. Softek's shareholders' equity at eh date of the acquisition is as follows:

Common Stock	$400,000
Additional paid-in capital	$20,000,000
Retained deficit	-$10,000,000
Accumulated other comprehensive loss	-$1,000,000
Treasury stock	-$500,000
Total	$8,900,000

Softek's assets and liabilities were carried at fair value except as noted below:

	Book Value	Fair Value
Plant assets, net	$12,000,000	$6,000,000
Trademarks	$-	$2,000,000
Customer lists	$-	$3,000,000

The fair value of the noncontrolling interest is estimated to be $9,000,000 at the date of acquisition.

Required:

Prepare the acquisition entry on Plummer's books and the working paper consolidation eliminating entries at the date of acquisition, following US GAAP.