1. Sigma Corp purchases all of Theta Inc.'s assets and liabilities on January 1, 2024, for $25 million in cash. At the date of acquisition, Theta's reported assets include current assets of $14 million and plant and equipment of $60 million. It reports current liabilities of $12 million and long-term debt of $35 million. Investigation reveals that Theta’s plant and equipment is undervalued by $3 million and it has an unreported software license valued at $1.2 million.
   • Prepare the necessary journal entry on Sigma's books to record its acquisition of Theta on January 1, 2024.
   • Assume that Sigma purchases all of Theta’s voting stock on January 1, 2024, for $25 million in cash. Prepare the necessary journal entry on Sigma’s books to record the acquisition.