Can you show all of your work please.

P4.5 LO 1, 2, 4 NIBE Consolidated Balance Sheet Working Paper, Bargain Purchase (see related P3.4) On January 1, 2019, Paxon Corporation acquired all of the outstanding common stock of Saxon Company for $1.7 billion cash. Paxon uses the complete equity method to report its investment. The trial balances of Paxon and Saxon at December 31, 2019, are shown below: HIHI Dr (Cr) (in millions) Paxon Saxon $ 3,200 2,260 $ 800 940 Cash and receivables. Inventory..... Equity method investments Investment in Saxon.. Land Buildings and equipment, net Current liabilities. . Long-term debt ... Common stock, par value Additional paid-in capital Retained earnings, January 1 Dividends Sales revenue. Equity in net income of Saxon Gain on sale of securities Gain on acquisition. Cost of goods sold. Depreciation and amortization expense. Interest expense. Other operating expenses Totals 2,158 650 3,600 (2,020) (5,000) (500) (1,200) (2,410) 500 (30,000) (458) 300 1,150 (1,200) (450) (100) (350) (845) 100 (10,000) (10) (100) 26,000 300 250 2,770 8,000 40 25 1,600 $ 0 $ 0 Several of Saxon's assets had fair values different from their book values at the acquisition date, as follows: (in millions) Fair value Book value Inventory (FIFO) (sold in 2019) Equity method investments (sold in 2019) Land Buildings and equipment, net (20 years, straight-line). . $(100) (50) 245 300 In addition, Saxon had previously unrecorded identifiable intangible assets valued at $110 million, with a 5-year life, straight-line. Required Prepare a schedule to compute equity in net income of Saxon for 2019, and the December 31, 2019 balance for Investment in Saxon, as reported on Paxon's books. b. Use a working paper to consolidate the trial balances of Paxon and Saxon at December 31, 2019. Prepare the consolidated balance sheet at December 31, 2019, and the consolidated income state- ment for 2019. a. C. Accounts Paxon Saxon Consolidated Eliminations Debit Credit 3,200 2,260 800 940 Cash & Receivables Inventory LT Investments Invest in Saxon 2,158 650 Land Buildings & Equip Current Liabilities LT Debt Capital Stock Additional PIC Retained Earnings Dividends Sales Revenue Income from Sub Gain on Sale Bargain Gain Cost of Sales Depreciation Interest Other Expenses Total 3,600 (2,020) (5,000) (500) (1,200) (2,410) 500 (30,000) (458) 300 1,150 (1,200) (450) (100) (350) (845) 100 (10,000) (10) (100) 26,000 8,000 40 300 250 2,770 25 1,600 0 0