Photomax Corporation Acquired All of the Stock of Synapsis Corporation

Photomax Corporation acquired all of the stock of Synapsis Corporation by issuing 1,000,000 shares of $1 par stock with a market value of $40 per share. Registration fees were $300,000 and legal fees were $500,000, all paid in cash. Synapsis' book value at the date of acquisition was $3,000,000, consisting of capital stock reported at $500,000, retained earnings of $2,600,000, and accumulated other comprehensive loss of $100,000. At the date of acquisition, all of Synapsis' assets and liabilities were reported at amounts approximating fair value, except that its plant and equipment was overvalued by $8,000,000. Synapsis also had unreported developed technology valued at $12,000,000, and unreported warranty liabilities of $5,000,000. Because this is a nontaxable acquisition, deferred tax assets valued at $1,200,000 were reported in consolidation at the date of acquisition.
Required a. Prepare the entry Photomax made to report the acquisition on its own books.
b. Prepare consolidation eliminating entries (E) and (R) at the date of acquisition.