1. Artemis Inc. acquires all of Ares Co.'s assets and liabilities on January 1, 2040, for $105 million in cash. Ares’s reported assets consist of current assets of $52 million and plant and equipment of $300 million. It reports current liabilities of $95 million and long-term debt of $180 million. Investigation reveals that Ares’s plant and equipment is undervalued by $12 million and it has an unreported customer list valued at $8 million.
   • Prepare the necessary journal entry on Artemis’s books to record its acquisition of Ares on January 1, 2040.
   • Assume that Artemis purchases all of Ares’s voting stock on January 1, 2040, for $105 million in cash. Prepare the necessary journal entry on Artemis’s books to record the acquisition.