1. Titan Corp purchases all of Hydra Co.'s assets and liabilities on January 1, 2029, for $40 million in cash. At the date of acquisition, Hydra's reported assets include current assets of $20 million and plant and equipment of $100 million. It reports current liabilities of $30 million and long-term debt of $70 million. Investigation reveals that Hydra’s plant and equipment is overvalued by $3 million and it has an unreported brand value of $2 million.
   • Prepare the necessary journal entry on Titan’s books to record its acquisition of Hydra on January 1, 2029.
   • Assume that Titan purchases all of Hydra’s voting stock on January 1, 2029, for $40 million in cash. Prepare the necessary journal entry on Titan’s books to record the acquisition.