1. Hermes Corp purchases all of Aphrodite Ltd.'s assets and liabilities on January 1, 2041, for $110 million in cash. At the date of acquisition, Aphrodite's reported assets include current assets of $55 million and plant and equipment of $320 million. It reports current liabilities of $100 million and long-term debt of $190 million. Investigation reveals that Aphrodite’s plant and equipment is overvalued by $9 million and it has an unreported intellectual property valued at $10 million.
   • Prepare the necessary journal entry on Hermes’s books to record its acquisition of Aphrodite on January 1, 2041.
   • Assume that Hermes purchases all of Aphrodite’s voting stock on January 1, 2041, for $110 million in cash. Prepare the necessary journal entry on Hermes’s books to record the acquisition.