Consolidated Balance Sheet Working Paper, Bargain Purchase 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: Dr(Cr) (in millions) Paxon Saxon Cash and receivables $3,050 $855 Inventory 2,260 530 Equity method investments -- -- Investment in Saxon 2,635 -- Land 650 300 Buildings and equipment (net) 3,600 1,150 Current liabilities (2,020) (1,200) Long-term debt (5,000) (450) Common stock, par value (500) (50) Additional paid-in capital (1,200) (200) Retained earnings, January 1 (2,410) (600) Dividends 500 250 Sales revenue (30,000) (12,000) Equity