Eliminating Entries, Goodwill

Polaris Company acquires all of the stock of SSC, Inc. for $60 million in cash. At the date of acquisition, SSCs current assets had a book value of $20 million, its noncurrent assets had a book value of $80 million, and its liabilities had a book value of $90 million. It is determined that the book values of SSCs net assets approximate fair value at the date of acquisition. SSCs shareholders equity consists of capital stock of $2 million, retained earnings of $9 million (credit balance), and treasury stock of $1 million.

Required

Prepare the eliminating entries necessary to consolidate the balance sheet accounts of Polaris and SSC at the date of acquisition.

Enter answers in millions.

Ref.	Description		Debit	Credit
(E)	Capital stock		Answer	Answer
	AnswerGoodwillLiabilitiesNoncurrent assetsRetained earningsTreasury stockInvestment in SSC		Answer	Answer
	AnswerGoodwillLiabilitiesNoncurrent assetsRetained earningsTreasury stockInvestment in SSCInvestment in SSC		Answer	Answer
	Investment in SSC		Answer	Answer
(R)	AnswerGoodwillLiabilitiesNoncurrent assetsRetained earningsTreasury stockInvestment in SSC		Answer	Answer
	AnswerGoodwillLiabilitiesNoncurrent assetsRetained earningsTreasury stockInvestment in SSC		Answer	Answer