1. Hera Inc. acquires all of Hephaestus Co.'s assets and liabilities on January 1, 2038, for $95 million in cash. Hephaestus’s reported assets consist of current assets of $48 million and plant and equipment of $260 million. It reports current liabilities of $85 million and long-term debt of $160 million. Investigation reveals that Hephaestus’s plant and equipment is undervalued by $10 million and it has an unreported software value of $6 million.
   • Prepare the necessary journal entry on Hera’s books to record its acquisition of Hephaestus on January 1, 2038.
   • Assume that Hera purchases all of Hephaestus’s voting stock on January 1, 2038, for $95 million in cash. Prepare the necessary journal entry on Hera’s books to record the acquisition.