(20) Panoz Corporation issues 1 million shares of stock, valued at $50 per share, to acquire all of the stock of Shelby, Inc. Panoz accounts for the acquisition as a stock acquisition. Balance sheet information at the date of acquisition is as follows (in millions): Panoz Corp. Shelby, Inc. Book Value Book Value Fair Value Dr (Cr) Dr (Cr) Dr (CM) Cash and receivables 510 $5 $5 Inventory 40 10 7 Property and equipment, net 350 100 90 Investment in Shelby Current liabilities (60) ) (20) Long-term liabilities (200) (80) (78) Capital stock (120) (10) Retained earnings (100) (6) Accumulated other comprehensive income 10 (1) Treasury stock 20 2 Total SO SO Shelby has no previously unrecorded identifiable intangible assets. Required a. Calculate the amount of goodwill recognized for this acquisition $ million b. Prepare the consolidation working paper at the date of acquisition. Use negative signs with your Cr (Credit) answers in the Consolidated Balances Dr(Cr) column. Consolidation Working Paper Accounts Taken From Books Eliminations Panoz Shelby Consolidated (in millions) Dr(Cr) Dr(Cr) Debit Credit Balances Dr(Cr) Cash and receivables $10 $5 (R) Inventory 40 10 (R) Property and equipment, nel Investment in Shelby 50 TE) (R) Goodwill (R) Goodwill (R) (60) (R) Current liabilities Long term liabilities Capital stock Retained earnings AOCI (20) (80) (10) (6) (200) (120) (100) 10 (E) (E) (E) (1) 2 Treasury stock 20 (E) Total $ $ $ $ $ $ $ C. Present the consolidated balance sheet, in good form, at the date of acquisition. Do not use negative signs with any of your answers below. Panoz Corporation and Subsidiary Consolidated Balance Sheet Date of Acquisition (in millions) Assets Liabilities Cash and receivables Current liabilities Inventory Long-term liabilities Property and equipment, net Total liabilities Goodwill Shareholders' equity Capital stock Retained earnings AOCI Treasury stock Total equity Total assets Total liabilities and equity $