On July 1, 2013, The Hershey Company acquired 75 percent of the common stock of Bagota Organic Chocolates. The $1.2 billion purchase price was paid in cash and newly-issued debt securities. The acquisition entry is reflected below in the two companies' balance sheets just after the acquisition.

Independent appraisals produced the following fair value estimates for certain of Bagota's previously recorded assets and liabilities. In addition, previously unreported customer-related intangibles have an estimated fair value of $30 million. Bagota's noncontrolling interest has an estimated fair value of $375 million.

Required
a. Prepare a schedule to compute the total goodwill and its allocation to the controlling and noncontrolling interest.
b. Prepare a working paper to consolidate the balance sheets of Hershey and Bagota at July l, 2013.
c. Prepare a formal consolidated balance sheet for Hershey and Bagota at July 1, 2013.

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Balance Sheets at July 1, 2013 (in millions) Hershey Bagota Assets Current assets Property, plant and equipment, net.. Investment in Bagota Patents and trademarks. $ 325 $1,500 1,600 1,200 1,300 600 75 $1,000 $5,600 Liabilities and Stockholders' Equity ..._ . ..--...$1,600 1,900 300 1,950 3,900 Treasury stock ...(4.000) (50) s 100 400 10 200 300 Common stock, par value . Additional paid-in capital . Accumulated other comprehensive income (loss)..w. Total liabilities and stockholders' equity (10) $1,000 $5,600 Fair Value (in millions) Property, plant and equipment, net Long-term liabilities . .L.. Book Value $400 120 375 $600 75 400