Recording Entries for Equity Investment: Equity Method On January 1, 2020, Mercedez Company purchased 600 of the 1,500 outstanding shares of Auto Supplies Inc. for $60,000. At that date, the balance sheet of Auto Supplies Inc. showed the following values. Assets not subject to depreciation $60,000 * Assets subject to depreciation 39.000 ** Liabilities 9,000 * Common stock (par $1) Retained earnings 75,000 15,000 * Same as fair value. ** Fair value $45,000; the assets have a 10-year remaining useful life (straight-line depreciation). a. Provide the entry by Mercedez Company to record the acquisition at a cost of $60,000.