a) prepare a schedule computing the gain on acquisition

b) prepare a schedule calculating the equity in net income of Saxon for 2019, reported on Paxons books, and the noncontrolling interest in net income for 2019, to be reported on the consolidated income statement for 2019

c) prepare a working paper to consolidate the trial balanaces of Paxon and Saxon at December 31, 2019

Required a. Prepare the acquisition entry made b. Prepare the working paper eliminating B Consolidation Working Paper One Year After Acquisition, Bargain Purch lated P4.5) On January 1, 2019, Paxon Corporation acquired 90 percent of the oee the working paper eliminating entries to consolid ase at the date of acquisition. mon stock of Saxon Company for $1,520 million cash. The fair value of the 10 percen interest in Saxon was estimated to be $180 million at the date of acquisition. Paxon uses acand Saxon at December 31,201 equity method to report its investment. The trial balances of Paxon and Saxon at Decem appear below: Dr (Cr) Paxon Saxon (in millions) Cash and receivables. Equity method investments Land $3,370 $ 800 940 2,260 1,942.2 650 3,600 300 1,150 Buildings and equipment, net 2,020) (1.200 (500) (1,200) (2,410) 500 (100 (350) 845) 100 Common stock, par value Dividends (30,000) (10,000) (412.2) Gain on acquisition. (100) (10) 8,000 Cost of goods sold. 26,000 300 250 2,770 Interest expense. Other operating expenses Totals . 25 1,600 Several of Saxon's assets had fair values different from their book values at the acquisitiond date, as (in millions) Fair value- Book value $(100) (50) 245 300 Equity method investments (sold in Buildings and equipment, net (20 years, straight-line). . . . . . . . . . . In addition, Saxon had previously unrecorded identifiable intangible assets valued at $110 million, with a 5-year life, straight-line