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) Land 245 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.