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International Technology Inc. (ITI) acquires all of the voting stock of Global Outsourcing Corporation (GOC) on June 30, 2015. Amounts paid are as follows (in

International Technology Inc. (ITI) acquires all of the voting stock of Global Outsourcing Corporation (GOC) on June 30, 2015. Amounts paid are as follows (in millions): Cash consideration to the former shareholders of GOC $50 2,000,000 shares of new $1 par common stock issued 60 Registration fees on new stock issued, paid in cash 3 Outside legal and advisory services, paid in cash 5 Fair value of earnings contingency 2 The earnings contingency provides for a potential payout to the former shareholders of GOC at the end of the third year following acquisition. The balance sheets of both companies immediately prior to the acquisition are as follows. Fair values of GOC's assets and liabilities at the date of acquisition are also provided. ITI GOC Balance Sheets (in millions) Book Value Book Value Fair Value Current assets $200 $10 $15 Property, plant and equipment, net 500 130 70 Intangible assets 1,300 20 30 Total assets $2,000 $160 Current liabilities $150 $20 $20 Long-term liabilities 1,200 100 103 Common stock, par 20 4 Additional paid-in capital 550 60 Retained earnings 100 (25) Accumulated other comprehensive income (15) 3 Treasury stock (5) (2) Total liabilities and equity $2,000 $160 The intangible assets reported above consist of patents and trademarks. GOC also has the following previously unreported intangible assets that meet FASB ASC Topic 805 requirements for asset recognition: Fair Value Advanced technology $5 Customer lists 25 Required (a) Prepare the journal entry or entries ITI makes to record the acquisition on its own books (in millions and enter all decimal places).

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