Eliminating Entries, Goodwill Pendragon Corporation acquired all of the stock of Sherwood, Inc. for $500 million...

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Eliminating Entries, Goodwill Pendragon Corporation acquired all of the stock of Sherwood, Inc. for $500 million in cash. Sherwood's shareholders' equity accounts at the date of acquisition were as follows: (in millions) Common stock, par $2 25 Additional paid-in capital Retained earnings (deficit) (50) Accumulated other comprehensiveloss (3) Treasury stock Total shareholders' equity (deficit) (2) $(28) The following previously unreported assets of Sherwood were reported in the acquisition (in millions): Customer lists $70 Brand names 150 Sherwood's fixed assets are overstated by $35 million, but the book values of its other assets and liabilities approximate fair value. (a) Calculate the goodwill for this acquisition. $ million (b) Present the working paper eliminating entries necessary to consolidate the balance sheets of Pendragon and Sherwood at the date of acquisition. Enter answers in millions. ConsolidationJournal Description Debit Credit (E) Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss (R) Customer lists Brand names Fixed assets, net Eliminating Entries, Goodwill Pendragon Corporation acquired all of the stock of Sherwood, Inc. for $500 million in cash. Sherwood's shareholders' equity accounts at the date of acquisition were as follows: (in millions) Common stock, par $2 25 Additional paid-in capital Retained earnings (deficit) (50) Accumulated other comprehensiveloss (3) Treasury stock Total shareholders' equity (deficit) (2) $(28) The following previously unreported assets of Sherwood were reported in the acquisition (in millions): Customer lists $70 Brand names 150 Sherwood's fixed assets are overstated by $35 million, but the book values of its other assets and liabilities approximate fair value. (a) Calculate the goodwill for this acquisition. $ million (b) Present the working paper eliminating entries necessary to consolidate the balance sheets of Pendragon and Sherwood at the date of acquisition. Enter answers in millions. ConsolidationJournal Description Debit Credit (E) Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss (R) Customer lists Brand names Fixed assets, net