Reconstructing Book Values and Eliminating Entries Cove Corporation owns all of Bay Company's common stock, acquired for $72 million in cash. Cove reported the acquisition as a stock acquisition on its own books. Immediately after the acquisition, Cove reported current assets of $18 million, noncurrent assets (including its investment in Bay's stock) at $216 million, and liabilities of $108 million. The consolidated balance sheet of Cove and Bay at the date of acquisition reports consolidated total assets of $323 million, including goodwill of $67 million related to the acquisition of Bay. At the date of acquisition, Bay had no previously unreported intangible assets, but its current assets were overvalued by $2 million, its noncurrent assets were overvalued by $24 million, and its liabilities were overvalued by $1 million. Required a. Calculate the fair value of Bay's identifiable total assets at the date of acquisition. $ b. Calculate the fair value of Bay's liabilities at the date of acquisition. $ c. Calculate the book value of Bay's net assets at the date of acquisition. Note: Use a negative sign to indicate net liabilities. $ d. Prepare working paper eliminating entries (E) and (R) to consolidate Cove and Bay at the date of acquisition. IE) To eliminate Bay's equity accounts against the investment account (R) To revalua Bay's assets and liabilities to fair value Debit Credit