Consolidated Balance Sheet Working Paper, Date of Acquisition, Bargain Purchase On January 1, 2016, Paxon Corporation acquired 80 percent of the outstanding common stock of the Saxon Company for $2 billion cash. The balance sheets of Paxon and Saxon, immediately prior to the combination, follow: (in millions) Paxon Saxon Assets Cash and receivables Inventory Equity method investments Land Buildings and equipment, net Total assets Liabilities and shareholders' equity Current liabilities Long-term debt Common stock, par value $5,720 $1,440 3,400 1,800 600 1,300 350 4,800 1,200 $15,220 $5,390 $3,000 $2,000 4,000 800 1.000 200 + Additional paid-in capital Retained earnings 2,400 700 4,820 1,690 Total liabilities and shareholders' equity $15,220 $5,390 Several of Saxon's assets and liabilities had fair values that were different from their book values. Estimates of the fair values of these items follow: (in millions) Estimated fair value Inventory $2,000 Equity method investments 500 Land 840 Buildings and equipment, net 1,800 Long-term debt 580 The estimated fair value of the noncontrolling interest in Saxon is $400 million. a. Calculate the gain on acquisition and prepare De the acquisition (in millions) a. Calculate the gain on acquisition and prepare Paxon's entry to record the acquisition (in millions) When appropriate, use negative signs with your revaluation answers (left column only). Do not use negative signs with your answers in the right column. Enter answers in millions. Acquisition cost Fair value of noncontrolling interest 0 x 0 x $ 0 $ 0 x Total Book value of Saxon Revaluations: Inventory 2,000 x Equity method investments 500 x Land 840 x Buildings and equipment, net 1,800 x Long-term debt Fair value of identifiable net assets 580 x 0 x Consolidation Working Paper Accounts Taken From Books Eliminations Paxon Saxon (in millions) Dr (Cr) Dr (Cr) Debit Credit Cash and receivables $ 0 x $ 0 x Inventory 0x Equity method investments 0x (R) 0 x Investment in Saxon 0 x - Consolidated Balances Dr (Cr) 0> 0x 0> 0x (R) 0 > 0x (E) 0 0x (R) Land 0 x 0x (R) 0 x 0 > Buildings and equipment, net 0 x 0x (R) 0x 0 > Current liabilities 0 x 0 x Long-term debt 0 x 0x (R) 0 x Common stock, par value 0 x 0x (E) 0 x Additional paid-in capital 0 x 0x (E) 0 x Retained earnings 0x 0x (E) 0 x Noncontrolling interest (R) 0 x 0x (E)