Consolidated Balance Sheet Working Paper, Bargain Purchase 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: Dr(Cr) (in millions) Paxon Saxon Cash and receivables Inventory Equity method investments $3,200 $800 2,260 940 Investment in Saxon 2,158 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) (100) Additional paid-in capital (1,200) (350) Retained earnings, January 1 (2,410) (845) Dividends 500 100 Sales revenue (30,000) (10,000) Equity in net income of Saxon (458) Gain on sale of securities (10) Gain on acquisition (100) Cost of goods sold 26,000 8,000 Depreciation and amortization expense 300 40 Interest expense 250 25 Other operating expenses 2,770 1,600 Totals $0 $0