13, on January 1 of the current year, the Portland Corporation purchased 100% of the Sanfor paying $500,000 cash. Sanford Corporation will cease to exist as a separate entity after date of the purchase, the Sanford Corporation reported the following account balances: oration, the purchase. On the Book Value 100,000 85,000 75,000 100,000 30,000 15,000 50,000 100,000 225,000 Market Value 100,000 80,000 70,000 140,000 35,000 15,000 50,000 100,000 225,000 Difference Cash Receivables Inventories Buildings, Net Equipment, Net Current Liabilities Long-Term Liabilities Common Stock Retained Earnings (5,000) (5,000) 40,000 5,000 The following additional information is available in connection with the acquisition. . In connection with the acquisition, the Portland Corporation paid the following additional fees: o Attorney Fees $10,000 12,000 2,000 1,000 o Auditor Fees o SEC Registration and Filing Fees o Miscellaneous Printing and Other Costs Portland Corporation is contractually obligated to pay the former owners $75,000 contingent on meeting certain revenue goals during Years 2 and 3. The estimated present value of the probability adjusted expected payment for this contingency is $22,500. . Sanford Corporation has developed a customer list appraised at $25,000, although it is not recorded in its financial records . Sanford has research and development activity in process with an appraised fair value of $50,000. The project has not yet reached technological feasibility and the assets used in the activity have no alternative future use. Required: Write the journal entry or entries for the accounting records of Portland to record the purchase of Sanford Corporation