Transco Acquires the Stock of Quicktruck The Stock Options Replace Options Held by Quicktruck Employees, Currently

Transco acquires the stock of Quicktruck. The acquisition involves the following payments:
$\begin{array}{lr}\text { Cash paid to Quicktruck's former shareholders } & \$ 3,000 \\\text { Cash paid to consultant s and lawyers } & 500 \\\text { Fair value of new stock issued, 2,000 shares, \$1 par } & 35,000 \\\text { Stock reg istration fees paid in cash } & 200 \\\text { Fair value of stock options to Quicktruck employees } & 1,000\end{array}$
The stock options replace options held by Quicktruck employees, currently denominated in Quicktruck stock. Of the total fair value of options granted, 75% are vested, and the remainder are compensation for services to be provided. Quicktruck's balance sheet at the date of acquisition appears below. Fair value information on its assets and liabilities is also provided.
$$\begin{array} { | l | r | r | } \hline{ \text { Quick truck } } \\\hline \text { Assets } & { \text { Book Value } } & { \text { Fair Value } } \\\hline \text { Current assets } & & \\\hline \text { Fixed assets, net } & \$ 1,000 & \$ 1,300 \\\hline \text { Patents } & 25,000 & 22,000 \\\hline \text { Total assets } & 4,000 & 10,000 \\\hline & \$ 30,000 & \\\hline \text { Liabilities \& equity } & & \\\hline \text { Current liabilities } & \$ 300& 300 \\\hline \text { Loanspayable } & 21,000 & 20,000 \\\hline \text { Common stodk, par value } & 100 & \\\hline \text { Additional paid-in Gapital } & 7,400 & \\\hline \text { Retained earnings } & 1,000 & \\\hline \text { Acaumulated OCl } & 800 & \\\hline \text { Treasury stodk } & (600 ) & \\\hline \text { Total liabilities \& equity } & \$ 30,000 & \\\hline\end{array}$$ In addition to the assets and liabilities reported on Quicktruck's balance sheet, the following previously unreported assets and liabilities are identified as requiring recognition, per ASC Topic 805:
$$\begin{array} { l r } & \text { Fair value } \\\hline \text { Franchise agreements } & \$ 2,000 \\\text { Deferred tax assets } & 400 \\\text { Favorable leases } & 300 \\\text { Claims payable } & 1,500\end{array}$$ Required a. Prepare the entry Transco made to record the acquisition on its own books.
b. Prepare a schedule calculating the excess paid over book value and its allocation to Quicktruck's identifiable assets and liabilities and goodwill.
c. Prepare eliminating entries (E) and (R) to consolidate the balance sheet accounts of Transco and Quicktruck at the date of acquisition.