Stock Acquisition and Consolidation Working Paper Eliminating Entries Pfizer Inc. acquired all of the stock of Pharmacia for 1,817 million shares of its .$50 par value stock on April 16, 2003. The fair value of the stock issued was $30.75/share. Merger-related cash costs were $101 million. Pharmacias stockholders equity accounts at the date of acquisition totaled $7,236 million, and the fair values of its assets and liabilities differed from reported book values as follows:

(in millions)	Fair Value Less Book Value
Inventory	$2,939
Long-term investment	40
Property, plant and equipment	(317)
In-process research and development	5,052
Developed technology rights	37,066
Long-term debt (undervalued)	1,841
Other assets	(15,606)

Round all answers to the nearest million.

Required:

a. Prepare the journal entry Pfizer made to record the acquisition on its own books, following current U.S. GAAP.

b. Calculate the goodwill purchased in this acquisition.

c. Prepare the consolidation working paper eliminating entries needed to consolidate the balance sheets of Pfizer and Pharmacia on April 16, 2003.