Pinnacle Corporation acquired all of Stengl Corporation's common stock by issuing 500,000 shares of $0.01 par common stock with a current market value of $15,000,000. Related accountants' and attorneys' fees were $400,000, paid in cash. The total book value of Stengl's shareholders' equity consists of capital stock of $10,000 and retained earnings of $1,690,000. Book values and fair values of Stengl's assets and liabilities are given below: Book Value Cash and receivables $200,000 Inventories Fair Value $180,000 800,000 500,000 2,000,000 1,300,000 (300,000) (300,000) (1,000,000) (1,100,000) $1,700,000 $580,000 Plant assets, net Current liabilities Long-term debt Totals In addition, Stengl has previously unrecorded identifiable intangible assets with a fair value of $400,000 that meet ASC Topic 805 criteria for recognition.

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.