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On January 1, 20X0, Hunter Corporation issued 7000 of its $10 par value shares to acquire 45 percent of the shares of Arrow Manufacturing Arrow

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On January 1, 20X0, Hunter Corporation issued 7000 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 $ 33,000 33,000 80,000 129,000 159000 0,000 90,000 Buildings & Equipment (net) Patent 90,000 Total Assets 332,000 Liabilities & Equities Accounts Payable Common Stock Retained Eamings $ 140,000 140,000 141,000 51,000 332,000 Total Liabilities & Equities 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 5 years. The amount of the differential assigned to goodwill is not impaired In the two years following the stock acquisition, Arrow M and $59,000 and paid dividends of $20,000 and $49,000, respectively.Hunter used the equity method in accounting for its ownership of Arrow Manufacturing reported net income of $89,000 Required: a. Prepare the entry recorded by Hunter Corporation at the time of acquisition (If no entry is required for a transactionlevent, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet Record the acquisition of Arrow Manufacturing stock 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 transactionlevent, select "No journal entry required" in the first account field View transaction list Journal entry worksheet Record the acquisition of Arrow Manufacturing stock Note: Enter debits before credits. Credit General Journal Event View general journal Clear entry Record entry 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 transactionlevent, select No journal entry required in the first account field View transaction list Journal entry worksheet Record the dividends received from Arrow Manufacturing Note: Enter debits before credits. View general journal Clear entry Record entry account on December 31, 20X1

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