On January 1, 20X0, Hunter Corporation issued 10,000 of its $10 par value shares to acquire 45 percent of the shares of Arrow Manufacturing. Arrow Manufacturing's balance sheet immediately before the acquisition contained the following items:

ARROW MANUFACTURING Balance Sheet January 1, 20X0
	Book Value				Fair Value
Assets
Cash and Receivables		$	43,000			$	43,000
Land			79,000				89,000
Buildings & Equipment (net)			127,000				157,000
Patent			89,000				89,000
Total Assets			338,000
Liabilities & Equities
Accounts Payable		$	144,000				144,000
Common Stock			142,000
Retained Earnings			52,000
Total Liabilities & Equities		$	338,000

On the date of the stock acquisition, Hunter's shares were selling at $35, and Arrow Manufacturing's buildings and equipment had a remaining economic life of 10 years. The amount of the differential assigned to goodwill is not impaired.

In the two years following the stock acquisition, Arrow Manufacturing reported net income of $89,000 and $59,000 and paid dividends of $24,000 and $49,000, respectively. Hunter used the equity method in accounting for its ownership of Arrow Manufacturing.

Required:

a.	Prepare the entry recorded by Hunter Corporation at the time of acquisition. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b-1.	Prepare the journal entries recorded by Hunter during 20X0 related to its investment in Arrow Manufacturing. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b-2.	Prepare the journal entries recorded by Hunter during 20X1 related to its investment in Arrow Manufacturing. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

c.	What balance will be reported in Hunters investment account on December 31, 20X1?