1.Equity Securities - Significant Influence (Equity Method).See's Candies bought 40% of Molly's Ice Cream Co. on January 2, 2019 for 60 million.The carrying value of Molly's assets on that date was $100 million.Book value and fair values were the same for all financial statement items except for inventory and buildings, for which fair value exceeded book value by $5 million and $25 million, respectively.All inventory on hand at the date of acquisition was sold during 2019. The buildings have a remaining life of 10 years. During 2019, Molly reported total Net Income of $30 million and paid dividends of $10 million.The Fair Value of the Investment at the end of 2019 was $63 million.

a.Prepare the appropriate journal entries for this investment for 2019. (You can make your JE's in Millions)

i.Journal Entry #1

ii.Journal Entry #2

iii.Journal Entry #3

iv.Journal Entry #4

b.What are the amounts that See's Candies should report relative to this investments in the following 2019 Financial Statements:

i.Income Statement

ii.Balance Sheet

i.Statement of Cash Flows