Property, plant and equipment, net . .. . . . . . .. 20 years Patents and trademarks . 5 years Advanced technology. . . 5 years Customer lists . . .. Indefinite Long-term debt . . .. 3 years The straight-line method is used for limited-life assets. Impairment losses on the customer lists were $2 million in fiscal 2020 and $4 million in fiscal 2021. Goodwill impairment losses were $2 million in fiscal 2019, $3 million in fiscal 2020, and $2 million in fiscal 2021. GOC reported net income of $15 million in fiscal 2019, and a net loss of $2 million in fiscal 2020. Neither company pays dividends. ITI uses the complete equity method to account for its investment in GOC on its own books. The trial balances of ITI and GOC at June 30, 2021, are as follows: Dr (Cr) (in millions) ITI GOC Current assets . . . .. $ 232 $ 12 Property, plant and equipment, net . . 600 140 Identifiable intangible assets . . . . . . . . . . 1,100 30 Investment in GOC. . 127 Current liabilities. . . . (175) (10) Long-term liabilities . (1,125) (105) Common stock, par . . . . (22) (4) Additional paid-in capital (580) (60) Retained earnings, July 1 . . (118) 12 Accumulated other comprehensive income, July 1 . (16) (4) Treasury stock . . 8 2 Sales revenue. (2,000) (900) Equity in net income of GOC (7) Equity in OCI of GOC . . . (1 ) Cost of goods sold. . ... . 1,400 800 Operating expenses . . ... .... 580 88 Other comprehensive income (3) (1) Totals . 0 $ 0Consolidation Working Paper, Three Years After Acquisition (see related P32) Inter-11a! tional Technology Inc. (H'I) acquired all of the voting stock of Global Outsourcing Corporation (GOC) on June 30, 2018, for $110 million in cash and stock, plus an earnings contingency payable at the end of the third year with a fair value of $2 million at the date of acquisition. Within the measurement period, the earnings contingency declined to a fair value of zero and the acquisition price was appropriately adjusted. Both companies have a June 30 year-end. At June 30, 2018, GOC's total shareholders' equity was $40 million, as follows (in millions): Common stock, par .............................................................. $ 4 Additional paid-in capital .......................................................... 60 Retained earnings (deficit) ......................................................... (25} Accumulated other comprehensive income ............................................ 3 Treasury stock .................................................................. (2} Total .......................................................................... At the acquisition date, GOC's inventories were undervalued by $5 million, its property, plant and equip- ment was overvalued by $60 million, its reported patents and trademarks were undervalued by $10 million, and its long-term debt was undervalued by $3 million. GOC also had previously unreported identiable intangibles: $5 million of advanced technology and $25 million of customer lists. GOC re ports its inventory using the LIFO method, and purchases exceed sales every year. The acquisition date remaining lives of its assets and liabilities are as follows