1. Poseidon Corp purchases all of Amphitrite Ltd.'s assets and liabilities on January 1, 2037, for $90 million in cash. At the date of acquisition, Amphitrite's reported assets include current assets of $45 million and plant and equipment of $240 million. It reports current liabilities of $80 million and long-term debt of $150 million. Investigation reveals that Amphitrite’s plant and equipment is overvalued by $7.5 million and it has an unreported intellectual property valued at $5 million.
   • Prepare the necessary journal entry on Poseidon’s books to record its acquisition of Amphitrite on January 1, 2037.
   • Assume that Poseidon purchases all of Amphitrite’s voting stock on January 1, 2037, for $90 million in cash. Prepare the necessary journal entry on Poseidon’s books to record the acquisition.