Packet Industries Purchased All the Voting Stock of Sameer Manufacturing

Packet Industries purchased all the voting stock of Sameer Manufacturing for $200 million in cash. Accounting and legal costs connected with the acquisition were $1 million, paid in cash. The acquisition also includes an earnout, currently valued at $3 million. At the date of acquisition, the fair value of Sameer's plant and equipment was $400 million less than carrying value. However, Sameer had $150 million in developed technology, unreported on its balance sheet, but meeting the criteria for capitalization as part of the acquisition. The balance sheets of Packet and Sameer just prior to the acquisition appear below.
$$\begin{array} { | l | r | r | } \hline & { \text { Packet } } & \text { Sameer } \\\hline \text { (in millions) } & { \text { Dr (Cr) } } \\\hline \text { Current assets } & \$ 410 & \$ 360 \\\hline \text { Plant \& equipment, net } & 1,500 & 900 \\\hline \text { Liabilities } & \{ 600 \} & \{ 800 \} \\\hline \text { Common stock } & \{ 10 \} & \{ 10 \} \\\hline \text { Additional paid-in capital } & \{ 1,000 \} & \{ 425 \} \\\hline \text { Retained earnings } & \{ 320 \} & \{ 30 \} \\\hline \text { Treasury stock } & 20 & 5 \\\hline \text { Total } & \$ \quad 0 & \$ \quad 0 \\\hline\end{array}$$ Required a. Prepare the journal entry Packet made on its own books to record its acquisition of Sameer.
b. Prepare a working paper to consolidate the balance sheet accounts of Packet and Sameer at the date of acquisition.