A new CEO was hired to revive the floundering Champion Chemical Corporation. The company had endured operating losses for several years, but confidence was emerging that better times were ahead. The board of directors and shareholders approved a quasi reorganization for the corporation. The reorganization included devaluing inventory for obsolescence by $108 million and increasing land by $5 million. Immediately prior to the restatement, at December 31, 2018, Champion Chemical Corporation's balance sheet appeared as follows (in condensed form): CHAMPION CHEMICAL CORPORATION Balance Sheet At December 31, 2018 (s in millions) Cash Receivables Inventory Land Buildings and equipment (net) s 21 46 242 48 90 447 Liabilities Common stock (344 million shares at 1 par) Paid-in capital-excess of par Retained earnings (deficit) 258 344 89 (244) S 447 Required: 1. Prepare the journal entries appropriate to record the quasi reorganization on January 1, 2019. 2. Prepare a balance sheet as it would appear immediately after the restatement