The balance sheet of Seattle Company, along with market values of its assets and liabilities (as of 1/1/2018), is as follows:

	Seattle Company
	book value dr (cr)	market value dr (cr)
Current assets	$ 2,000,000	$ 1,500,000
Plant & equipment (net)	30,000,000	35,000,000
Patents	100,000	2,000,000
Completed technology	0	10,000,000
Brand name	0	16,000,000
Licensing agreements	0	4,000,000
Goodwill	200,000	700,000
Liabilities	(28,000,000)	(30,000,000)
Common stock, $10 par	(1,000,000)
Additional paid-in capital	(5,000,000)
Retained earnings	1,700,000

1. On 1/1/2018, assume Portland Company pays $10,000,000 in cash to acquire the assets and liabilities of Seattle Company. Prepare the JE made by Portland to record the business combination as a merger.
2. Now assume on 1/1/2018, Portland Company pays $100,000,000 in cash for Seattle Company’s assets and liabilities. Prepare the JE made by Portland to record the business combination as a merger.
3. Portland paid $100,000,000 in cash for Seattle. Three months later, Seattle’s patents are determined to have been worthless as of the date of acquisition. Prepare the entry to record this information.
4. Portland paid $100,000,000 in cash for Seattle. Three months later, Seattle’s patents are determined to have been worthless due to an event occurring after the acquisition. Prepare the entry to record this information.