E3.9 Help Please!!

Required: Prepare the entry Phoenix makes to record the acquisition of Spark.

Acquisition Entry and Consolidation Working Paper Phoenix, Inc. acquired all of the outstand- ing common stock of Spark Corporation for $950 million cash plus 30 million shares of Phoenix's com- mon stock having a market value of $25 per share. Registration fees were $5 million and merger-related consultant and legal fees were $8 million, paid in cash. Immediately prior to the acquisition, the trial balances of the two companies were as follows: L Dr (Cr) Phoenix Spark (in millions) $2,000 11,900 $200 700 (500) (150) (8,000) (300) (300) (100) (50) (1,100) (300) Current assets Plant and equipment, net Current liabilities. Long-term liabilities Common stock, $1 par. Additional paid-in capital.... Retained earnings (4,000) A review of the fair values of Spark's assets indicates that current assets are overvalued by $40 million, plant and equipment is overvalued by $250 million, and previously unreported brand names and trade- marks have a fair value of $200 million