George Corporation acquired all of the stock of Johnson Corporation on LO 1, 3 January 2, 2013. The book value of the net assets of Johnson on that date was $300,000,000 and the fair values of Johnson's identifiable net assets equaled the book values, except for plant assets undervalued by $50,000,000. The fair market value of the shares issued by George Corporation was $500,000,000. Revalued plant assets are to be straight-line depreciated over 25 years. For the year ended December 31, 2013, Johnson reported net income of $85,000,000 and paid dividends of $30,000,000.
Required
Prepare journal entries to record George's acquisition of Johnson and subsequent entries to the investment account for 2013, using the complete equity method. Assume goodwill impairment for 2013 is $20,000,000.