On January 1, 20XO, Hunter Corporation issued 8,000 of its $15 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 Land Buildings & Equipment (net) Patent $ 32,000 32,000 98,000 158,000 98,000 88,000 128,000 98,000 Total Assets 346,000 Liabilities & Equities Accounts Payable Common Stock Retained Earnings $ 170,000 133,000 43,000 170,000 Total Liabilities & Equities $ 346,000 On the date of the stock acquisition, Hunter's shares were selling at $40, 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 $84,000 and $54,000 and paid dividends of $26,000 and $44,000, 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.) View transaction list View journal entry worksheet No Event General Journal Debit Credit Investment in Arrow Manufacturing stock Common stock 120,000 Additional Paid-in capital