ADL Corporation Issued 1,500,000 Shares of Common Stock with a Market

ADL Corporation issued 1,500,000 shares of common stock with a market value of $25 per share to acquire all of Timeout Co.'s voting stock. Timeout's book value is $15 million, and its net assets are reported at fair value, except for the following:
•Current assets are undervalued by $500,000.
•Plant & equipment is undervalued by $1,000,000.
•Previously unrecorded Movies & Videos are valued at $5,000,000.
•There is a preacquisition contingent liability (potential lawsuit) connected with Timeout, valued at $4,000,000, which is not recorded on Timeout's books.
Required a. Present a schedule calculating the excess of acquisition cost over book value for this acquisition and its allocation to the assets and liabilities of Timeout.
b. A consolidation working paper for this acquisition, as of the date of acquisition, appears below. Fill in the worksheet as necessary to consolidate the balance sheet accounts of ADL and Timeout as of the date of acquisition. $\begin{array}{|c|c|c|c|c|c|}\hline & \begin{array}{c}\mathrm{ADL} \\\operatorname{Dr}(\mathrm{Cr})\end{array} & \begin{array}{c}\text { Timeout } \\\operatorname{Dr}(\mathrm{Cr})\end{array} & \text { Dr } & \mathrm{Cr} & \begin{array}{c}\text { Consolidated } \\\text { Dr (Cr) }\end{array} \\\hline \text { Current assets } & \$ 5,000,000 & \$ 15,000,000 & & & \\\hline \text { PP\&E, net } & 90,000,000 & 78,000,000 & & & \\\hline \text { Investment in Timeout } & 37,500,000 & & & & \\\hline & & & & & \\\hline \text { Current liabilities } & (15,000,000) & (8,000,000) & & & \\\hline \text { Long-term liabilities } & (40,000,000) & (70,000,000) & & & \\\hline \text { Capital stock } & (67,500,000) & (3,000,000) & & & \\\hline \text { Retained earnings } & (10,000,000) & (12,000,000) & & & \\\hline \text { Total } &\$\quad 0 &\$ \quad 0 & & & \\\hline\end{array}$
c. Present the consolidated balance sheet at the date of acquisition, in good form.