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		$ 5,720	$ 1,440
Inventory		3,400	1,800
Equity method investments		--	600
Land		1,300	350
Buildings and equipment, net		4,800	1,200
Total assets		$ 15,220	$5,390
Liabilities and shareholders' equity
Current liabilities		$ 3,000	$ 2,000
Long-term debt		4,000	800
Common stock, par value		1,000	200
Additional paid-in capital		2,400	700
Retained earnings		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.

Please help me with the elimination Debits and Credits

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