PROBLEMS 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. P5.1 Balance Sheets at July 1, 2020 Schmidt Petra (in millions) $ 325 $1,500 1,600 1,200 1,300 Assets Current assets 600 Property, plant and equipment, net Investment in Schmidt. 75 Patents and trademarks. $1,000 $5,600 Total assets $ 100 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) $1,600 1,900 400 300 1,950 3,900 (4,000) (50) 10 200 300 (10) $1,000 $5,600 Total liabilities and shareholders' equity 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. Book value (in millions) Fair value $400 Property, plant and equipment, net Patents and trademarks. $600 120 75 Long-term liabilities 375 400 Required Prepare a schedule to compute the total goodwill and its allocation to the controlling and noncontro ling interest. b. Prepare a working paper to consolidate the balance sheets of Petra and Schmidt at July 1, 2020. c. Prepare a formal consolidated balance sheet for Petra and Schmidt at July 1, 2020