b. Prepare Sonara Company's separate condensed balance sheet at the date of acquisition. Stock Acquisition, Previous Equity Interest and Goodwill, Merger-Related Costs, De- ferred Taxes In 2013, AB InBev acquired the remainder of the stock of Grupo Modelo that it did not previously own. AB InBev had previously reported its investment in Grupo Modelo using the equity method. All numbers below are in millions. Acquisition cost information is as follows: Cash consideration paid to Grupo Modelo shareholders, at $9.15/share. Fair value of previously held equity Investment. Merger-related transactions costs, paid in cash. Property, plant and equipment. Goodwill Intangible assets Investment in associates Investment securities Current assets Noncurrent liabilities: Employee benefits. Trade and other payables. Deferred tax liabilities. Current liabilities Net identified assets and liabilities. The following table summarizes the date-of-acquisition fair and book values of Grupo Modelo's iden- tifiable net assets acquired, as reported in the footnotes to AB InBev's 2013 financial statements (credit balances are in parentheses): ******* WWARKITE GEALD AYESHA ***** **** $20,103 13,905 100 Book Value $4,609 796 458 79 19 4,922 LO 4, 5 AB INBEV ABI (256) (78) (418) (928) $9,203 Fair Value $ 4,708 4,912 75 19 9,255 (256) (587) (1.132) (2,578) $14.416 Required a AB InBev reported this acquisition as a stock acquisition. Prepare the journal entry it made on its own books to record the acquisition of Grupo Modelo. b. Grupo Modelo reported goodwill on its books at $796 million, which is adjusted to a fair value of zero. Explain why this revaluation occurs. c. Grupo Modelo's deferred tax liabilities had a fair value that was significantly higher than book value. Explain how the acquisition caused an increase in deferred tax liabilities. d. Calculate the goodwill recognized for this acquisition Prepare eliminating entries (E) and (R) to consolidate Grupo Modelo at the date of acquisition.

Stock Aequinition, Provious Equily Interest and Coodwall, Merger-Pelated Costs, De: LO 4, 5 in inery bulances are in purentheves) Requimat own books to rexond the accuination of Grupo Madklo b. Gevpo Madelo reported poodwill on is bocis as $7% millian, which is adjusied to a fair valie of arro. Explain why teis tevalualos octon