On January 2, 2017, Fisher Corporation acquired all of the voting common stock of Grant Corporation for its own stock worth \($10,000,000,\) in a merger Grant's condensed balance sheet on January 2, 2017, appears below:

 Required

a. Prepare the journal entry made by Fisher to record the acquisition of Grant. There are no unrecorded identifiable intangibles.

b. During 2017, new facts are discovered that reset the value of the lawsuit at the date of acquisition to \($300,000.\) Prepare the journal entry to record the change in the value of the lawsuit.

c. Assume that at the end of 2018, based on events occurring after the acquisition date, the lawsuit was settled out of court for \($400,000\) in cash. Prepare the journal entry to record this event.

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Assets Cash and receivables. Inventory. Plant assets Other assets Total assets Liabilities and Stockholders' Equity Current liabilities.... Long-term debt Capital stock Retained earnings Total liabilities and equity.. Book Value Fair Value 6,400,000 $6,400,000 3,800,000 5,800,000 4,000,000 6,500,000 3,000,000 3,000,000 $17,200,000 Book Value Fair Value $ 5,000,000 1,800,000 2,000,000 8,400,000 $17,200,000 $5,000,000 1,800,000