Use the Following Information to Answer Bellow Questions:
Parrott Corporation

Use the following information to answer bellow Questions:
Parrott Corporation acquires the assets and liabilities of Swann Company. The fair values of Swann's reported assets and liabilities are estimated to be as follows at the date of acquisition.
$$\begin{array} { | l | c | } \hline & { \begin{array} { c } \text { Fair Value } \\\text { Dr (Cr) }\end{array} } \\\hline \text { Current assets } & \$ \quad 400 \\\hline \text { Plant \& equipment, net } & 1,500 \\\hline \text { Liabilities } & \{ 1,200 \} \\\hline\end{array}$$ Parrott determines that Swann has not recorded the following intangible assets on its books:
$$\begin{array} { | l | c | } \hline & \text { Fair Value } \\\hline \text { Completed technology } & \$ \quad 600 \\\hline \text { Fayorable leases } & 100 \\\hline \text { Synergies on future projects } & 250 \\\hline \text { Assembled workforce } & 800 \\\hline\end{array}$$ These intangibles may or may not all meet the standards for capitalization as identifiable intangible assets. Each of the following questions is independent.
-Powell Corporation paid $15 million in cash to acquire the assets and liabilities of Sloan Company. Powell also agreed to make an additional cash payment in the future, with an expected present value of $600,000, if certain performance targets are met. Powell paid legal and consulting fees of $300,000 in cash in connection with the merger. A comparison of book and fair values of Sloan's reported assets and liabilities follows:
$\begin{array}{lrr} \text { (in thousands)} &\text { Book Value}&\text { Fair Value }\\\\ \text { Current assets.} &\$600&\$450\\ \text { Property and equipment, net.} &5,000&2,000\\ \text { Patents and trademarks.} &200&1,800\\ \text {Current liabilities. } &(400)&(400)\\ \text { Long-term debt. } &(3,000)&(3,200)\\ \text { Net assets. } &\$2,400&\$650\\\end{array}$
Sloan also has previously unreported developed technology, valued at $1.2 million, meeting ASC Topic 805 criteria for capitalization.
Required
a. What is the acquisition cost for this transaction?
b. Prepare the journal entry or entries made by Powell to record the business combination as a merger.