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 $$3$ billion cash. The balance sheets

of Paxon and Saxon, immediately prior to the combination, follow:

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:

The estimated fair value of the noncontrolling interest in Saxon is $$600$ million.

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

Paxon's acquisition entry $($in millions$)$:

b$.$ Prepare a working paper to consolidate the balance sheets of Paxon and Saxon at January $1,2016.$

Remember to use negative signs with your credit balance answers in the $Dr(Cr)$ columns. Enter answers in millions.

c$.$ Present the consolidated balance sheet, in good form, at the date of acquisition $($in millions$).$

Do not use negative signs with any of your answers.

Enter answers in millions.