Consolidated Balance Sheet Working Paper, 8argain Purchase Onjanuary 1, 2022, Paxon Corporation acquired all of...
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Consolidated Balance Sheet Working Paper, 8argain Purchase Onjanuary 1, 2022, Paxon Corporation acquired all of the outstanding common stock of Saxon Company for \$2 billion cash. The balance sheets of Paxon and Saxon, immedately prior to the combination, are shown below: Several of Saxon's assets had fair values that were different from their book values. Estimates of the fair values of these items follow: In addition, Saxon had previously unrecorded identifiable assets valued at $875 million. Required (a) Calculate the gain on acquisition in this bargain purchase. s million (b) Prepare a working paper to consolidate the balance sheets of Paxon and Saxon at january 1,2022. Remember to use negative signs with your credit balance answers in the Dr(Cr) columns. (b) Prepare a working paper to consolidate the balance sheets of Paxon and Saxon at january 1, 2022. Remember to use negative signs with your credit balance answers in the Dr(Cr) columns. (c) Present the consolidated balance sheet, in good form, at the date of acquisition
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