Eliminating Entries, Goodwill

Polaris Company acquires all of the stock of SSC$,$ Inc. for $$100$ million in cash. At the date of acquisition, SSC$$s equity consists of capital stock of $$25$ million, retained earnings of $$40$ million $($credit balance$),$ and accumulated other comprehensive income of $$5$ million $($credit balance$).$ SSC$$s books report current assets Required

Note: Provide all answers in millions.

Note: Do not use negative signs.

a$.$ Prepare a schedule calculating the goodwill to be recognized for this acquisition.

b$.$ Prepare working paper eliminating entries $($E$)$ and $($R$)$ to consolidate the balance sheet accounts of Polaris and SSC at the date of acquisition.of $$20$ million, equipment of $$150$ million, and liabilities of $$100$ million. Stark$$s assets and liabilities are reported on its books at amounts that approximate fair value, except that equipment with a book value of $$20$ million has a fair value of $$30$ million. Stark has no previously unreported identifiable intangible assets.