On December 31, 2012, Paxon Corporation acquired 90 percent of the outstanding common stock of Saxon Company for $1,620 million cash. The fair value of the 10 percent noncontrolling interest in Saxon was estimated to be $180 million at the date of acquisition. Paxon uses the complete equity method to report its investment. The trial balances of Paxon and Saxon at December 31, 2013, appear below:

Several of Saxon's assets and liabilities had fair values different from their book values at the acquisition date, as follows:
(in millions)FairValue-Book Value
Inventory (FIFO)$100
Marketable securities (sold in 2013)(50)
Land245
Buildings and equipment, net (20 years, straight-line)300
Long-term debt (5 years, straight-line)(110)
Required
a. Prepare a schedule computing the gain on acquisition.
b. Prepare a schedule calculating the equity in net income of Saxon for 2013, reported on Paxon's books, and the noncontrolling interest in income for 2013, to be reported on the consolidated income statement for 2013.
c. Prepare a working paper to consolidate the trial balances of Paxon and Saxon at December 31,2013.

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Dr (Cr) (in millions) Paxon Saxon 3,270 $800 940 Inventory.*.. 2,260 Investment in Saxon..._.*.*...^*...a^aee.._...*.. 1,962.2 Land 650 3,600 300 1,150 (1.200) 450) Gurrent liabilities. 2,020) (5000) 100) Long-term debt Additional paid-in capital . Dividends (500) (1,200) Retained earnings, January 1....(2.610) 500 (350) (845) 100 (30 000(10.00) 232.2) (10) 8,000 40 25 1,600 0 Depreciation expense. Interest expense.. Other operating expenses 26,000 300 250 4G4AC4 2,770