On December 31, 2012, Paxon Corporation acquired all of the outstanding common stock of Saxon Company for $1.44 billion cash. The balance sheets of Paxon and Saxon, immediately prior to the combination, are shown below: Balance Sheets (in millions) Paxon Saxon Assets Cash and receivables $2,288 $576 Inventory 1,360 720 Equity method investments -- 240 Land 520 140 Buildings and equipment, net 1,920 480 Total assets 6,088 2,156 Liabilities and Shareholders' Equity Current liabilities 1,200 800 Long-term debt 1,600 320 Common stock, par value 400 80 Additional paid-in capital 960 280 Retained earnings 1,928 676 Total liabilities and shareholders' equity $6,088 $2,156 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 $800 Equity method investments 200 Land 336 Buildings and equipment, net 720 Long-term debt 232 (a) Calculate the gain on acquisition in this bargain purchase. $Answer 0 million (b) Prepare a working paper to consolidate the balance sheets of Paxon and Saxon at December 31, 2012. Remember to use negative signs with your credit balance answers in the Dr (Cr) columns. Consolidation Working Paper Accounts Taken From Books Eliminations (in millions) Paxon Dr (Cr) Saxon Dr (Cr) Debit Credit Consolidated Balances Dr (Cr) Cash and receivables Answer 0 Answer 576 Answer 0 Inventory Answer 0 Answer 0 (R) Answer 0 Answer 0 Equity method investments Answer 0 Answer 0 (R) Answer 0 Investment in Saxon Answer 0 Answer 0 (E) Answer 0 Answer 0 (R) Land Answer 0 Answer 0 (R) Answer 0 Answer 0 Buildings and equipment, net Answer 0 Answer 0 (R) Answer 0 Answer 0 Current liabilities Answer 0 Answer 0 Answer 0 Long-term debt Answer 0 Answer 0 (R) Answer 0 Answer 0 Common stock, par value Answer 0 Answer 0 (E) Answer 0 Answer 0 Additional paid-in capital Answer 0 Answer 0 (E) Answer 0 Answer 0 Retained earnings Answer 0 Answer 0 (E) Answer 0 Answer 0 Total Answer 0 Answer 0 Answer 0 Answer 0 Answer 0 (c) Present the consolidated balance sheet, in good form, at the date of acquisition. Paxon Corporation and Subsidiary Consolidated Balance Sheet December 31, 2012 (in millions) Assets Liabilities Cash and receivables Answer 0 Current liabilities Answer 0 Inventory Answer 0 Long-term debt Answer 0 Long-term investments Answer 0 Total liabilities Answer 0 Land Answer 0 Buildings and equipment, net Answer 0 Shareholders equity Common stock, par value