The notes to recent financial statements of Colgate-Palmolive contained the following information (dollar amounts in millions):
3. Acquisitions and Divestitures
On June 20, 2011, the Company ... finalized the Company's acquisition from Unilever of the Sanex personal care business ... for an aggregate purchase price of $966 .... This strategic acquisition is expected to strengthen Colgate's personal care business in Europe, primarily in the liquid body cleansing and deodorants business. Total purchase price consideration of $966 has been allocated to the net assets acquired based on their respective fair values at June 20, 2011 ...
Assume that Colgate-Palmolive acquired 100 percent of the fair value of the net assets of Sanex in a recent year for $1,377 million in cash. Sanex's assets at the time of the acquisition had a book value of $625 million and a fair value of $1,036 million. Colgate-Palmolive also assumed Sanex's liabilities of $70 million (book value and fair value of the liabilities are the same). Prepare the entry on the date of acquisition as a merger