PRO nsolidation Working Paper, Date of Aquisition On July 1,2016. The Hershey Company LO1 red 75 percent of the common stock of Bagota Organic Chocolates. The $1.2 billion purchase price acqu aid in cash and newly-issued debt securities. The acquisition entry is reflected below in the two companies' balance sheets just after the acquisition Balance Sheets at July 1, 2016 in millions) Hershey Bagota Assets Current assets Property, plant and equips net Investment in Bagota Patents and trademarks $1,500 1,600 1,200 $ 325 600 Total assets $5,600 $1,000 Liabilities and Stocknolders' Equity Current liabilities. Long-term liabilities Common stock, par value $1,600 1,900 300 $ 100 400 Additional paid-in capital Retained earnings... Treasury stock Accumulated other comprehensive income (loss).. Total liabilities and stockholders' equity . . . . . . . . . . . . . . . . . . 200 300 3,900 (4,000) (50) .$5,600 (10) $1,000 Independent appraisals produced the following fair value estimates for certain of Bagota's previously recorded assets and liabilities. In addition, previously unreported customer-related intangibles have an estimated fair value of $30 million. Bagota's noncontrolling interest has an estimated fair value of $375 million Book value $600 400 Fair value (in millions) $400 120 375 Patents and trademarks. Required a. Prepare a schedule to compute the total goodwill and its allocation to the controlling and noncontrol- repare a working paper to consolidate the balance sheets of Hershey and Bagota at July 1,2016. Prepare a formal consolidated balance sheet for Hershey and Bagota at July 1, 2016. ling interest. f Acquisition, Bargain Purchase (see LO 3