Return to course Support Dashboard Ricardo Garcia Consolidation Working Paper, Identifiable Intangibles, Goodwill International Technology Inc. (IT) acquires all of the voting stock of Global Outsourcing Corporation (GOC) on June 30, 2010. Amounts paid are as follows in min Cash consideration to the former shareholders of GOC $40 1,200,000 shares of new $1 par common stock Registration fees on new stock issued, paid in cash Outside legal and advisory services, paid in cash Fair value of earnings contingency 48 24 The earnings contingency provides for a potential payout to the former shareholders of GOC at the end of the third year following acquisition. The balance sheets of both companies immediately prior to the acquisition are as follows Fair values of GOCS assets and liabilities at the date of acquisition are also provided GOC Balance Sheets (in millions) Current assets Book Value Book Value Fair Value $160 " $12 Property, plant and equipment net 400 104 Intangible assets 1040 16 24 Total $1,400 $126 Current liabes $120 $16 $16 Long term lubilities 100 80 824 Common stock par 16 32 Addmonal paid-in capital 440 48 Rataned earning 30 (201 Accumulated other comprehensive income 012) 24 Treasury stock (4) Total Sables and equity $1,400 $120 The intangible assets reported above consist of patents and trademarks. GOC also has the following previously unreported intangible assets that meet ASC Topic 805 requirements for asset recognition: Advanced techndingy Customer st Fair Value 24 (a) Prepare the journal entry or entries IT makes to record the acquistion on its own books (in millions and enter all decimal places) (a) Prepare the journal entry or entries ITI makes to record the acquisition on its own books (in millions and enter a decimal places) General Journal Support Dashboard Ricardo Garcia Description Investment in GOC $ Common stock Additional paid-in capital Cash Debit Credit 0 0 0 O 0 0 0 (b) Prepare a working paper to consolidate the balance sheets of IT and GOC at June 30, 2010. Enter answers in millions and enter all decimal places. Remember to use negative signs with your credit balance answers in the Dr (C) columns Consolidation Working Paper Accounts Taken From Books Eliminations GOC (in millions) Dr (C) Dr (Cr) Debit Credit Consolidated Balances Or (C) Current assets $ 05 0 Property, plant and equipment net 0 Investment in GOC 0 0 in 000 intangible assets Advanced technology Customer ists Goodwill Current abilities Long-term labilities 0 000 0 (R) 0 0 R 0 0 Camunan stock, $1 par 0 01) Additional paid-in capital D 0 0 Betained eamings 0 0 Accumulated other comprehensive income D DE 0 0 Treasury stock 0 0 0 0 0$ 0 05 0 Total