Pebble Company Pays $60 Million in Cash to Acquire All

Pebble Company pays $60 million in cash to acquire all of the stock of Speck Company. The balance sheets of Pebble and Speck just after the acquisition are as follows:
$\begin{array}{|l|c|c|}\hline \text { (in millions) } & \text { Pebble } & \text { Speck } \\\hline \text { Current assets } & \$ 140 & \$ 40 \\\hline \text { Plant assets, net } & 2,000 & 1,200 \\\hline \text { Investment in Speck } & \underline{60} & -- \\\hline & \$ 2,200 & \$ 1,240 \\\hline & & \\\hline \text { Liabilities } & \$ 400 & \$ 1,200 \\\hline \text { Capital stock } & 1,700 & 50 \\\hline \text { Retained earnings } & \underline{100} & \underline{\{10\}} \\\hline \text { Total } &{\$ 2,200}&{\$ 1,240} \\\hline\end{array}$
Speck's assets and liabilities are reported at amounts that approximate fair value at the date of acquisition, and there are no unreported net assets.
Required a. Prepare the consolidated balance sheet for Pebble and Speck at the date of acquisition.
b. Now assume Pebble reports its investment in Speck using the equity method. Present Pebble's balance sheet.
c. Assume that instead of acquiring Speck's stock, Pebble has a financial relationship with Speck. There is no acquisition cost. Present Peck's balance sheet if:
1) Speck is a variable interest entity and Pebble is its primary beneficiary
2) Speck is a variable interest entity and Pebble is not its primary beneficiary
d. Calculate and compare the debt to asset ratio for each alternative above.