1. Zephyr Inc. acquires all of Boreas Ltd.'s assets and liabilities on January 1, 2030, for $50 million in cash. Boreas’s reported assets consist of current assets of $25 million and plant and equipment of $120 million. It reports current liabilities of $35 million and long-term debt of $80 million. Investigation reveals that Boreas’s plant and equipment is undervalued by $6 million and it has an unreported customer list valued at $3 million.
   • Prepare the necessary journal entry on Zephyr’s books to record its acquisition of Boreas on January 1, 2030.
   • Assume that Zephyr purchases all of Boreas’s voting stock on January 1, 2030, for $50 million in cash. Prepare the necessary journal entry on Zephyr’s books to record the acquisition.