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m was l Accounts receivable 5 ll] Inventories semi] Prepaid expenses Prppertv, plant, 81 equipment 15,{il] Intangible assets Accounts Payable Ncltes

Orange Corporation also purchased Bleaue Inc. for $350,000 on September 12, 2017. They purchased the following assets and liabilities:



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Required:

Provide the entry required when Bleaue was purchased.


............................................................................................................................................................


Orange Corporation also obtained two government grants in 2017.  


1. The government has offered a 10% rebate on salaries paid to workers if the factory is located in PEI, where the depressed economy has seriously impacted the ability of workers to find jobs. Orange located their factory in PEI in January 1, 2017, and has spent $450,000 in salaries in 2017. They will receive the rebate in February 2018. 


2. Orange also received a $2,000,000 grant due to their purchase of solar panels which they placed on the roof of their factory on January 1, 2017. The panels are expected to be last for the next 10 years and have a residual value of zero. Orange spent $18,000,000 on the panels.


Required:

1. Provide the entries for 2017 and 2018 with respect to the grants

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m— was lflfiflfl
Accounts receivable 5 lflfll]
Inventories semi] Prepaid expenses
Prppertv, plant, 81 equipment 15fl,{ifll]
Intangible assets
Accounts Payable
Ncltes Payable

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