Question 4 Part A: Two entities had the following balance sheet accounts as of December 31, 20X1 (in millions): B B Cash + other assets $900 $360 $250 Liabilities Stockholders' equity $60 $300 $650 On December 31, 20X1, Company A purchased all the shares of B for $300 million. The book and fair value of all assets and liabilities are the same. For 20X2, Company B's revenues and expenses were $190 and $120 million, respectively, and Company A's revenues and expenses on its other operations (that is, excluding B) were $290 and $180 million, respectively. 1. Prepare a consolidated balance sheet immediately after the acquisition. (Use balance sheet equation format.) 2. What is the net income of the consolidated entity for 20X2? Assume zero taxes. Assets Liabilities Accounts Payable SE Shareholders Equity Investments Goodwill 56 57 Question 5e Part 59 Question Part 1 (Consolidated Balancesheet) 60 Cash Other 61 Assets 62 A(12/31/XI) 6 A acquire B for 100m 64 A(12/31/X1) after acquisition 65 B (12/31/XI) 66 Intercompany Limination 67 Consolidated BS 60