tion Working Paper, Identifiable intangibles, Goodwill International Technology Inc. (II) acquires all of the voting stock or Global Outsourcing Corporation (GO) on June 10, 2010, Arcores paid are as follows un milions Oh consideration to the former shareholders of GOC 160 1.200,000 hest news or common stock issued 72 Registration fees on new stockissued pidin tash Outside legal and advisory VI paid inch Fair value of earning contingency The warnings 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 immer prior to the acquisition are as follows. Fair values of GOC) assets and abilities at the date of acquisition are also provided ITI GOC Balance Sheets (in millions Book Value Book Value Fair Value Current 520 512 510 Property plant and equment.net 600 54 tangles 24 36 Total assets 2.400 5192 Current abilities 5180 124 124 Long term bites 1.400 120 Common stock 24 Additional Dadan canita 660 Retained earning 720 Accumulated other.com wehensive income (18 3.6 Treasury stock co (24) Totallabilities and equity $2.400 5192 The intangible assets reported above consist of patents and trademarks, GOC also has the following previously unreported intable assets that meet ASC Top Sequirements for asset recognition Fair Value Advanced techology 56 Customer 30 (a) Prepare the journal entry or entries ITI makes to record the acquisition on its own books (in milions and enter all decimal places) General Journal Description Debit Credit Investment in GOC OX 0 Merger expenses 0 x OV Common stock 0 OX Additional paid-in capital 0 Contingent consideration liability 0 0 X Cash O 0 x OX (b) Prepare a working paper to consolidate the balance sheets of ITI 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 (Cr) columns Consolidation Working Paper Accounts Taken from Books Eliminations Consolidated ITI GOC Balances (in millions) Dr (CD) Dr (Cr) Debit Credit Dr (Cr) Current assets 0x5 0X (R) 0 x $ OX Property, plant and equipment, net OX OX 0X (R) OX Investment in GOC 0X OX (E) 0 ON (R) Intangible assets 0 X OX (R) OX OX Advanced technology (R) OX DX Customer lists - (R) OX OX Goodwill OX - (R) OX Current liabilities OX OX OX OX O X (R) OX OX Long term liabilities Common stock, $1 par OX OX OX (6 0 x 0X (E) 0 x OX OX Additional paid in capital OX Retained earnings O X (E) 0.X OX OX 0X (E) OX Accumulated other comprehensive income 0 x OX 0 X (E) 0.X Treasury stock 5 0 OS $ OX 07 $ Total
