Pringer Company acquires all of the stock of Stark, Inc. for $52 million in cash. At the date of acquisition, Starks equity consists of capital stock of $5 million, retained earnings of $37 million (credit balance), and treasury stock of $2 million. Starks books report current assets of $20 million, property of $100 million, and liabilities of $80 million. Starks assets and liabilities are reported on its books at amounts that approximate fair value, except that property with a book value of $25 million has a fair value of $22 million, and previously unreported identifiable intangible assets with a fair value of $15 million meet the requirements for capitalization per ASC Topic 805.

Prepare working paper eliminating entries (E) and (R) to consolidate the balance sheet accounts of Pringer and Stark at the date of acquisition.

Note: Provide all answers in millions.

Required

		Debit	Credit
(E)	Additional Paid-in-CapitalAOCICapital stockGoodwillIdentifiable intangible assetsInvestment in StarkMerger expensesPropertyRetained earningsTreasury stock		Answer
	Additional Paid-in-CapitalAOCICapital stockGoodwillIdentifiable intangible assetsInvestment in StarkMerger expensesPropertyRetained earningsTreasury stock		Answer
	Additional Paid-in-CapitalAOCICapital stockGoodwillIdentifiable intangible assetsInvestment in StarkMerger expensesPropertyRetained earningsTreasury stock		Answer
	Additional Paid-in-CapitalAOCICapital stockGoodwillIdentifiable intangible assetsInvestment in StarkMerger expensesPropertyRetained earningsTreasury stock		Answer
	To eliminate Starks equity accounts against the investment account
(R)	Additional Paid-in-CapitalAOCICapital stockGoodwillIdentifiable intangible assetsInvestment in StarkMerger expensesPropertyRetained earningsTreasury stock		Answer
			Answer
			Answer
	To revalue Starks assets and liabilities to fair value