1. Athena Corp purchases all of Apollo Ltd.'s assets and liabilities on January 1, 2039, for $100 million in cash. At the date of acquisition, Apollo's reported assets include current assets of $50 million and plant and equipment of $280 million. It reports current liabilities of $90 million and long-term debt of $170 million. Investigation reveals that Apollo’s plant and equipment is overvalued by $8 million and it has an unreported franchise value of $7 million.
   • Prepare the necessary journal entry on Athena’s books to record its acquisition of Apollo on January 1, 2039.
   • Assume that Athena purchases all of Apollo’s voting stock on January 1, 2039, for $100 million in cash. Prepare the necessary journal entry on Athena’s books to record the acquisition.