Consolidated Balance Sheet Working Paper, Bargain Purchase $($c$)$ Prepare the consolidated balance sheet at December $31,2022,$ and the consolidated income statement for $2022.$

INSTRUCTIONS: Do not use negative signs with any of your answers below for the balance sheet and income statement.

On January $1,2022,$ Paxon Corporation acquired all of the outstanding common stock of Saxon Company for $$2$ billion cash. Paxon uses the complete equity method to report its investment. The trial

balances of Paxon and Saxon at December $31,2022,$ are shown below:

Several of Saxon's assets had fair values different from their book values at the acquisition date, as follows:

In addition, Saxon had previously unrecorded identifiable intangible assets valued at $$875$ million, with a $5-$year life, straight$-$line.

Required

a$.$ Prepare a schedule to compute equity in net income of Saxon for $2022,$ and the December $31,2022$ balance for Investment in Saxon, as reported on Paxon's books.

Instructions:

Enter all answers in millions. Round all answers to the nearest million, when appropriate.

Use negative signs with answers that reduce equity in net income and the investment account balance.

Calculation of Investment Balance, December $31,2022$

$($in millions$)$