Goodwill International Technology Inc. (ITI) acquires all of the voting stock of Global Outsourcing Corporation (GOC) on June 30, 2010. Amounts paid are as follows (in millions):
Cash consideration to the former shareholders of GOC .......................... $50
2,000,000 shares of new $1 par common stock issued ............................. 60
Registration fees on new stock issued, paid in cash ................................. 3
Outside legal and advisory services, paid in cash .................................... 5
Fair value of earnings contingency ..................................................... 2
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 GOC's assets and liabilities at the date of acquisition are also provided.

The intangible assets reported above consist of patents and trademarks. GOC also has the following previously unreported intangible assets that meet FASB ASC Topic 805 requirements for asset recognition:
Fair Value
Advanced technology................................................... $ 5
Customer lists .............................................................. 25
Required
a. Prepare the journal entry or entries ITI makes to record the acquisition on its own books.
b. Prepare a working paper to consolidate the balance sheets of ITI and GOC at June 30, 2010.

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ITI GOC Balance Sheets (in millions) Book Value Book Value Fair Value S 10 130 20 $160 $ 15 70 30 Current assets. $ 200 500 1,300 $2,000 Total assets...-... S 20 100 $ 20 103 Long-term liabilities .^ . . Common stock, par Additional paid-in capital... Retained earnings Accumulated other comprehensive income.... Treasury stock . $ 150 1,200 20 550 100 (15) 60 (25) $160