Purchased Goodwill Consider the following balance sheets ($ in millions): Cash Inventories Plant assets, net Total assets Common stock and paid-in surplus Retained earnings Total liab. & stk. equity Company A 150 Company B 15 60 60 30 270 70 200 270 8 70 30. 40 70 Company A paid $100 million to Company B stockholders for all their stock. The "fair value" of the plant assets of Company B is $50 million. The fair value of cash and inventories is equal to their car- rying amounts. Companies A and B continued to keep separate books. 1. Prepare a tabulation showing the balance sheets of companies A and B, intercompany elimina- tions, and the consolidated balance sheet immediately after the acquisition. 2. Suppose that $60 million instead of $50 million of the total purchase price of $100 million could logically be assigned to the plant assets. How would the consolidated accounts be affected? 3. Refer to the facts in requirement 2. Suppose Company A had paid $120 million instead of $100 million. State how your tabulation in requirement 2 above would change.