11-4H Allocating Total Purchase Price to Assols Two Hollywood companies had the following balance sheet accounts as of December 31, 20X7 (3 in millions) Hudson Hudson Lexia Productions Lexia Productions Cash and receivables $ 60 $ 44 Current liabilities $ 100 $ 40 Inventories 240 Common stock 200 20 Plant assota, not 300 190 Retained earnings 300 18O Total assets $800 $240 Total liab. and stk. oq. $ GOO $240 Net Income for 20X7 On January 4, 20X8, these entities combined. Lexia issued $360 million of its shares (at market value) in exchange for all the shares of Hudson, a motion picture division of a large company. The inventory of films acquired through the combination had been fully amortized on Hudson's books. During 20X8, Hudson received revenue of $42 million from the rental of films from its inventory. Lexia earned $40 million on its other operations (i.e., excluding Hudson) during 20X8, Hadson broke even on lis other operations (Le., excluding the film rental contracts) during 20X8