A US Parent Acquired a U The Subsidiary's Net Assets Were Reported at Amounts Approximating Fair

A U.S. parent acquired a U.K. subsidiary when the exchange rate was $1.40/£, for an acquisition cost of £900,000. The subsidiary's functional currency is the pound. Its date-of-acquisition trial balance is as follows:
$$\begin{array} { | l | c | } \hline & \text { Dr (Cr) } \\\hline \text { Cash, receivables } &£100,000 \\ \hline \text { Inventories, at cost } & 175,000 \\\hline \text { Plant \& equipment, net } & 600,000 \\\hline \text { Liabilities } & \{ 575,000 \} \\\hline \text { Capital stock } & \{ 100,000 \} \\\hline \text { Retained earnings } & \{ 200,000 \} \\\hline & £ \quad 0 \\\hline\end{array}$$ The subsidiary's net assets were reported at amounts approximating fair value, except that it had previously unreported identifiable intangible assets valued at £80,000.
Required
a. Prepare a schedule, in U.S. dollars, calculating the excess of acquisition cost over the subsidiary's book value at the acquisition date, and its allocation to the subsidiary's identifiable net assets and goodwill.
b. Prepare eliminating entries (E) and (R) to consolidate the trial balances of the parent and the subsidiary at the date of acquisition.