Consolidated Balance Sheet Working Paper, Bargain Purchase \begin{tabular}{|l|r|r|} \hline \multicolumn{1}{|c|}{ Balance Sheets (in millions) } & Paxon & Saxon \\ \hline Assets & & \\ \hline Cash and receivables & $2,860 & $720 \\ \hline Inventory & 1,700 & 900 \\ \hline Equity method investments & -- & 300 \\ \hline Land & 2,400 & 175 \\ \hline Buildings and equipment, net & $7,610 & $2,695 \\ \hline \hline Total assets & & \\ \hline Liabilities and Shareholders' Equity & 1,500 & 1,000 \\ \hline Current liabilities & 2,000 & 845 \\ \hline Long-term debt & 500 & 50 \\ \hline Common stock, par value & 1,200 & 200 \\ \hline Additional paid-in capital & 2,410 & 600 \\ \hline Retained earnings & $7,610 & $2,695 \\ \hline \hline Total liabilities and shareholders' equity & & \end{tabular} (c) Present the consolidated balance sheet, in good form, at the date of acquisition. Several of Saxon's assets had fair values that were different from their book values. Estimates of the fair values of these items follow: In addition, Saxon had previously unrecorded identifiable assets valued at \$875 million. Required (a) Calculate the gain on acquisition in this bargain purchase. $ x million (b) Prepare a working paper to consolidate the balance sheets of Paxon and Saxon at January 1, 2022. Remember to use negative signs with your credit balance answers in the Dr(Cr) columns. Consolidated Balance Sheet Working Paper, Bargain Purchase \begin{tabular}{|l|r|r|} \hline \multicolumn{1}{|c|}{ Balance Sheets (in millions) } & Paxon & Saxon \\ \hline Assets & & \\ \hline Cash and receivables & $2,860 & $720 \\ \hline Inventory & 1,700 & 900 \\ \hline Equity method investments & -- & 300 \\ \hline Land & 2,400 & 175 \\ \hline Buildings and equipment, net & $7,610 & $2,695 \\ \hline \hline Total assets & & \\ \hline Liabilities and Shareholders' Equity & 1,500 & 1,000 \\ \hline Current liabilities & 2,000 & 845 \\ \hline Long-term debt & 500 & 50 \\ \hline Common stock, par value & 1,200 & 200 \\ \hline Additional paid-in capital & 2,410 & 600 \\ \hline Retained earnings & $7,610 & $2,695 \\ \hline \hline Total liabilities and shareholders' equity & & \end{tabular} (c) Present the consolidated balance sheet, in good form, at the date of acquisition. Several of Saxon's assets had fair values that were different from their book values. Estimates of the fair values of these items follow: In addition, Saxon had previously unrecorded identifiable assets valued at \$875 million. Required (a) Calculate the gain on acquisition in this bargain purchase. $ x million (b) Prepare a working paper to consolidate the balance sheets of Paxon and Saxon at January 1, 2022. Remember to use negative signs with your credit balance answers in the Dr(Cr) columns