STUC LO 4 E3.15 Pushdown Accounting Prevost Company acquires all of the voting stock of Sofia Industries for $50 million in cash, and accounts for the acquisition as a stock acquisition. Balance sheet information at the date of acquisition is as follows (in millions): Prevost Sofia Book Value Dr (Cr) Book Value Dr (Cr) Fair Value Dr (Cr) Current assets Investment in Sofia. $ 10 $ 5 Plant and equipment, not i 500 120 $ 3 90 50 Liabilities... Capital stock. Retained earnings (360) (80) (121) (121) (5) (120) 1 Total $ 0 $ 0 Sofia has previously unreported identifiable intangibles with a fair value of $25 million. Sofia elects to use pushdown accounting as of the date of acquisition. Required a. Prepare the entry Sofia makes on its own books at the date of acquisition. b. Prepare the consolidation eliminating entry or entries necessary to consolidate the balance sheets of Prevost and Sofia at the date of acquisition.