Paper Company acquired 100 percent of Scissor Companys outstanding common stock for $370,000 on January 1, 2008, when the book value of Scissors net assets was equal to $370,000, including Accumulated Depreciation of $24,000. Paper uses the equity method to account for investments. During 2008 Scissor Companys net income was $93,000 and declared dividends of $25,000. Trial balance date for Paper & Scissor as of December 31, 2008, are as follows:

Required

a. (Prepare the journal entries on Papers Books for the acquisition of Scissor on January 1, 2008.

b. Prepare the normal equity method journal entry(ies) related to the investment in Scissor Company during 2008 (End of the 1^st year)