The following background information of this question is repeated in some other questions: On 1 October 2019, Melody Group paid $300,000 to acquire 30% equity interest in Honey Limited when Honey's net identifiable assets had a carrying amount of $700,000. Melody reviewed the financial position of Honey and noted that the fair value of the net identifiable assets was equal to the carrying amount of them, except for a lawsuit which had not accounted for in the financial statements of Honey. The solicitor advised Melody that the lawsuit might not be settled within a year but there would be a high chance that it could be settled with a payment of $10,000. On 31 December 2019, Melody paid an additional $600,000 to acquire an additional 50% equity interests in Honey and would state all balances at fair value as a result of the acquisitions. From 1 October to 31 December 2019, Honey generated a profit of $50,000 and the fair value of its other assets and liabilities remained stable. Required: Discuss the accounting treatments of the acquisitions made by Melody(no calculation and journal entries are required for your answer)