Tipper Company Acquires Tacoma Company for $1,000,000 $$\begin{array} { |l | r| } \hline\text { Assets } & \$ 1,500,000 \\\hline \text { Liabilities } & 600,000\\\hline\end{array}$$

Tipper Company acquires Tacoma Company for $1,000,000.On the acquisition date,Tacoma has the following balances:
Assets
$$\begin{array} { |l | r| } \hline\text { Assets } & \$ 1,500,000 \\\hline \text { Liabilities } & 600,000\\\hline\end{array}$$
A)Record the entry Tipper Company will make to acquire Tacoma Company under each of the following assumptions:
1.Tacoma Company sells Tipper Company its net assets and goes out of existence as a corporation.
2.Tacoma Company sells Tipper Company its shares but continues as a legal entity.
B)Explain the difference in the consolidated financial statements for the two companies.