Equity Method and Eliminating Entries, Second Year On January 1, 2023, Playtel Inc. acquired all of the stock of San Jose Cable for $250 million in cash. At the date of acquisition, San Jose's shareholders' equity accounts were as follows (in thousands): Common stock, $1 par Additional paid-in capital Retained deficit Treasury stock Total Both companies have a December 31 year-end. At the date of acquisition, San Jose's reported net assets had book values approximating fair value. However, it had previously unreported indefinite-life identifiable intangibles valued at $65 million, meeting ASC Topic 805 requirements for capitalization. Impairment losses in 2023 for identifiable intangibles were $500,000. Goodwill from this acquisition was not impaired in 2023. San Jose reported net income of $3.0 million in 2023, and paid no dividends. Playtel uses the complete equity method to report its investment in San Jose on its own books. It is now December 31, 2024, two years since the acquisition. In 2024, San Jose reported net income of $3.0 million and declared and paid dividends of $400,000. Impairment losses on the identifiable intangibles were $1.0 million, and goodwill was impaired by $600,000. Note: Provide all answers in thousands a. Calculate equity in net income of San Jose for 2024, reported on Playtel's books $ 700,000 x $5,000 30,000 (1,000) (500) $33,500 b. Calculate the December 31, 2024, investment balance, reported on Playtel's books. $0 x c. Prepare eliminating entries (C). (E). (R), and (O), required to consolidate Playtel's trial balance accounts with those of San Jose on December 31, 2024. Debit (700,000) (C) Equity in net income of San Jose Investment in San Jose Additional paid-in capital To eliminate equity method entries (E) Common stock, $1 par Additional paid-in capital Retained earnings, 1/1 Treasury stock Investment in San Jose To eliminate subsidiary's equity account balances (R) Identifiable intangibles Goodwill Investment in San Jose To recognize fair value revaluations (0) Impairment losses V Identifiable intangibles Retained earnings, 1/1 To recognize revaluation write-offs V V 0 0 5,000 30,000 0 0 0 65,000 151,500 0 1,000 0 0 Credit 0x 0x 0x 0 0✔ 1,000 x 500✔ 33.500 x 0x 0✔ 216,500 x 0 5x 1,000✔ 0x