This is a financial accounting question that needs to be solved using equity method.

J 3. On December 31, 2OX9, Thessaly Corporation acquired all of Ionian Company's common shares, for $560,000 cash. On that date, Ionian's balance sheet appeared as follows: Assets Liabilities Cash $80,000 Current Payables $50,000 Accounts Receivables 40,000 Notes Payable 70,000 Inventory lO0,000 Stockholders' Equity Land 120,000 Common Stock 150,000 Building and Equipment (net) 260,000 Additional Capital 200,000 Retained Earnings 130,000 Total i6OOEOOO Total ioOOEOOO The fair values of all of Ionian's assets and liabilities were equal to their book values except for the following: Fair Value Inventory $140,000 Land 150,000 Buildings and Equipment 270,000 In recording this acquisition, push-down accounting was used. Required: 1) Record the acquisition of Ionian's stock on Thessaly's books on December 31, 2OX9. 2) Record any entries that would be made on December 31, 2OX9, on Ionian's books related to the business combination. 3) Present all consolidating entries that would appear in the worksheet to prepare a consolidated balance sheet immediately after the combination. J 4. On January 1, 2OX8, Vector Company acquired 70 percent of Scalar Company's ownership on for $112,000 cash. At that date, the fair value of the noncontrolling interest was $48,000. The knnlz '70'1'ID AFQPOIQT'C' "Pf OC'C'QfC' Of onnnioifinn '1700 'T'Inp '70'1100 Of)!" 'FQ;1' '70'1'IDC' AF L L