3 On May 1, Soriano-Co. reported the following account balances along with their estimated fair values: Receivables Inventory Carrying Amount 219,000 $ 92,000 152,000 Fair Value 219,000 92,000 16 Dovits References Copyrights. Patented technology Total assets Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and equities 832,000 $1,295,000 $ 256,000 $ 685,000 100,000 254,000 $ 1,295,000 533,000 677,000 1,521,000 256,000 673,000 On that day, Zambrano paid cash to acquire all of the assets and liabilities of Soriano, which will cease to exist as a separate entity. To facilitate the merger, Zambrano also paid $101,500 to an investment banking firm. The following information was also available: Zambrano further agreed to pay an extra $81,400 to the former owners of Soriano only if they meet certain revenue goals during the next two years. Zambrano estimated the present value of its probability adjusted expected payment for this contingency at $40.700. Soriano has a research and development project in process with an appraised value of $210,500. However, the project has not yet reached technological feasibility and the project's assets have no alternative future use. a&b. Prepare Zambrano's journal entries to record the Soriano acquisition assuming its initial cash payment to the former owners was (a) $743,800 & (b) $862.800. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Required information. Use this information to answer the following questions 10-12 (Algo) (LO 3-3a) [The following information applies to the questions displayed below.] On January 1, 2019, Phoenix Co. acquired 100 percent of the outstanding voting shares of Sedona Inc. for $706,000 cash. At January 1, 2019, Sedona's net assets had a total carrying amount of $494,200. Equipment (eight-year remaining life) was undervalued on Sedona's financial records by $92.000. Any remaining excess fair over book value was attributed to a customer list developed by Sedona (four-year remaining life), but not recorded on its books. Phoenix applies the equity method to account for its investment in Sedona. Each year since the acquisition, Sedona has declared a $29.500 dividend. Sedona recorded net income of $85,500 in 2019 and $103,100 in 2020. Selected account balances from the two companies' individual records were as follows: 2021 Revenues 2021 Expenses 2021 Income from Sedona Retained earnings 12/31/21 Phoenix $ 611,000 418,000 Sedona $380,000 283,000 55,550 304,750 206,900 Problem 3-12 (Algo) (LO 3-3a) On its December 31, 2021, consolidated balance sheet, what amount should Phoenix report for Sedona's customer list