1. Ares Inc. acquires all of Artemis Co.'s assets and liabilities on January 1, 2034, for $75 million in cash. Artemis’s reported assets consist of current assets of $38 million and plant and equipment of $180 million. It reports current liabilities of $65 million and long-term debt of $120 million. Investigation reveals that Artemis’s plant and equipment is undervalued by $7 million and it has an unreported patent valued at $4.5 million.
   • Prepare the necessary journal entry on Ares’s books to record its acquisition of Artemis on January 1, 2034.
   • Assume that Ares purchases all of Artemis’s voting stock on January 1, 2034, for $75 million in cash. Prepare the necessary journal entry on Ares’s books to record the acquisition.