Pinnacle Corporation acquired all of Stengl Corporation's common stock in an exchange of common shares with a current market value of $10,000,000. Related accountants' and attorneys' fees were $300,000. The total book value of Stengl's stockholders' equity consists of capital stock of $200,000 and retained earnings of $1,800,000. Book values and fair values of Stengl's assets and liabilities are given below:

In addition, Stengl has previously unrecorded identifiable intangible assets with a fair value of $1,200,000 that meet FASB ASC Topic 805 criteria for recognition.
Required
Prepare the working paper eliminating entries to consolidate the balance sheets of Pinnacle Corporation and Stengl Corporation at the date of acquisition.

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Book Value Fair Value $800,000 900,000 1,000,000 Current liabilities... .(1,000,000) (1,000,000) (475,000) Inventories. 1.100,000 1,600,000 Long-term debt . .i.... (500,000) $2000000 $1,225,000