Acquisition Entry and Consolidation Working Paper Phoenix, Inc. acquired all of the our ing common stock of Spark Corporation for $400 million cash plus 25 million shares of Phoenix's $10 stand- par value common stock having a market value of $90 per share. Registration fees were merger-related consultant and legal fees were $8 million, paid in cash. Immediately prior to the acquisi- tion, the trial balances of the two companies were as follows: $5 million and Dr (Cr) (in millions) Phoenix Spark . $1,000 .3,500 $200 700 (150) (300) (300) (50) (300) . (2,000) (100) Additional paid-in capital Retained earnings . Totals (1,100) ..$0 A review of the fair values of Spark's assets indicates that current assets are overvalued by $10 million plant and equipment is undervalued by $200 million, and previously unreported brand names and trade- marks have a fair value of $300 million. Required a. Prepare the entry Phoenix makes to record the acquisition of Spark. b. Prepare a working paper to consolidate the balance sheets of Phoenix and Spark at the date of acquisition