Pringle Corporation acquired all of the stock of Sunny Company, at an acquisition cost of $30 million. Sunnys book value at the time was $10 million. Sunnys current assets and current liabilities were carried at amounts approximating fair value. However, its plant assets were overvalued by $6 million. Sunny also has previously unreported developed technology valued at $4 million. Which of the following is FALSE concerning the consolidation working paper at the date of acquisition?

Eliminating entry (E) reduces the investment by $10 million. Eliminating entry (R) increases goodwill by $12 million Eliminating entry (R) increases identifiable intangible assets by $4 million. Eliminating entry (E) reduces Sunnys stockholders equity by $10 million All of the above are false