On December 31, 2012, Paxon Corporation acquired 90 percent of the outstanding common stock of Saxon Company for $648,000,000 cash. The fair value of the 10 percent noncontrolling interest in Saxon was estimated to be $72,000,000 at the date of acquisition. Paxon uses the complete equity method to report its investment. The trial balances of Paxon and Saxon at December 31, 2013, appear below:

	Dr(Cr)	Dr(Cr)
(in millions)	Paxon	Saxon
Cash and receivables	$1,308	$320
Inventory	904	376
Equity method investments	--	--
Investment in Saxon	784.88	--
Land	260	120
Buildings and equipment, net	1,440	460
Current liabilities	(808)	(480)
Long-term debt	(2,000)	(180)
Common stock, par value	(200)	(40)
Additional paid-in capital	(480)	(140)
Retained earnings, January 1	(1,044)	(338)
Dividends	200	40
Sales revenue	(12,000)	(4,000)
Equity in net income of Saxon	(92.88)	--
Gain on sale of securities	--	(4)
Gain on acquisition	(100)	--
Cost of goods sold	10,400	3,200
Depreciation expense	120	16
Interest expense	100	10
Other operating expenses	1,108	640
Total	$0	$0

Several of Saxon's assets and liabilities had fair values different from their book values at the acquisition date, as follows:

(in millions)	Fair Value less Book Value
Inventory (FIFO)	$40
Equity method investments (sold in 2013)	(20)
Land	98
Buildings and equipment, net (20 years, straight-line)	120
Long-term debt (5 years, straight-line)	(44)

(b) Prepare a schedule calculating the equity in net income of Saxon for 2013, reported on Paxon's books, and the noncontrolling interest in income for 2013, to be reported on the consolidated income statement for 2013.

• Use negative signs with answers that reduce net income amounts.

• Enter answers in millions, using decimal places, if appropriate.

(in millions)	Total	Equity in NI	Noncontrolling interest in NI
Saxon's reported net income for 2013	Answer	Answer	Answer
Revaluation writeoffs
Inventory	Answer	Answer	Answer
Equity method investments	Answer	Answer	Answer
Buildings and equipment	Answer	Answer	Answer
Long-term debt	Answer	Answer	Answer
	Answer	Answer	Answer