P5.1 Consolidation Working Paper, Date of Acquisition On July 1, 2020, Petra Foods acquired 75 percent of the common stock of Schmidt Confections. The $1.2 billion purchase price was paid in cash The acquisition entry is reflected below in the two companies' balance sheets just after the acquisition. Balance Sheets at July 1, 2020 (in millions) Petra Schmidt Assets Current assets... Property, plant and equipment, net Investment in Schmidt.. $1,500 325 600 1,600 1,200 Patents and trademarks.. 1,300 75 $5,600 $1,000 Total assets Liabilities and Shareholders' Equity Current liabilities.... Long-term liabilities Common stock, par value Additional paid-in capital Retained earnings .. Treasury stock . ... Accumulated other comprehensive income (loss). 100 $1,600 1,900 400 300 10 1,950 200 3,900 (4,000) (50) 300 (10) Total liabilities and shareholders' equity.. $1,000 $5,600 Independent appraisals produced the following fair value estimates for certain of Schmidt's previously recorded assets and liabilities. In addition, previously unreported customer-related intangibles have an estimated fair value of $30 million. Schmidt's noncontrolling interest has an estimated fair value of $375 million (in millions) Fair value Book value Property, plant and equipment, net. Patents and trademarks. .. . Long-term liabilities. . $400 $600 120 75 375 400 Required Prepare a schedule to compute the total goodwill and its allocation to the controlling and noncontrol ling interest. b. Prepare a working paper to consolidate the balance sheets of Petra and Schmidt at July 1, 2020. Prepare a formal consolidated balance sheet for Petra and Schmidt at July 1, 2020 a. C. P5.1 Consolidation Working Paper, Date of Acquisition On July 1, 2020, Petra Foods acquired 75 percent of the common stock of Schmidt Confections. The $1.2 billion purchase price was paid in cash The acquisition entry is reflected below in the two companies' balance sheets just after the acquisition. Balance Sheets at July 1, 2020 (in millions) Petra Schmidt Assets Current assets... Property, plant and equipment, net Investment in Schmidt.. $1,500 325 600 1,600 1,200 Patents and trademarks.. 1,300 75 $5,600 $1,000 Total assets Liabilities and Shareholders' Equity Current liabilities.... Long-term liabilities Common stock, par value Additional paid-in capital Retained earnings .. Treasury stock . ... Accumulated other comprehensive income (loss). 100 $1,600 1,900 400 300 10 1,950 200 3,900 (4,000) (50) 300 (10) Total liabilities and shareholders' equity.. $1,000 $5,600 Independent appraisals produced the following fair value estimates for certain of Schmidt's previously recorded assets and liabilities. In addition, previously unreported customer-related intangibles have an estimated fair value of $30 million. Schmidt's noncontrolling interest has an estimated fair value of $375 million (in millions) Fair value Book value Property, plant and equipment, net. Patents and trademarks. .. . Long-term liabilities. . $400 $600 120 75 375 400 Required Prepare a schedule to compute the total goodwill and its allocation to the controlling and noncontrol ling interest. b. Prepare a working paper to consolidate the balance sheets of Petra and Schmidt at July 1, 2020. Prepare a formal consolidated balance sheet for Petra and Schmidt at July 1, 2020 a. C