On December 31, 2012, Paxon Corporation acquired all of the outstanding common stock of Saxon Company for $1.08 billion cash. The balance sheets of Paxon and Saxon, immediately prior to the combination, are shown below:

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:

(b) Prepare a working paper to consolidate the balance sheets of Paxon and Saxon at December 31, 2012.

(a) Calculate the gain on acquisition in this bargain purchase. $ x million (c) Present the consolidated balance sheet, in good form, at the date of acquisition