813,800.

Record the acquisition of Soriano Co.

Record the expenses related to the combination.

b.

$923,600.

Record the acquisition of Soriano Co.

Record the expenses related to the combi

On May 1, Soriano Co. reported the following account balances along with their estimated fair values: Carrying Amount Fair Value Receivables 284,400 284.400 Inventory 78,600 78,600 Copyrights 145,000 528.000 731,000 Patented technology 873,000 Total assets 1,381,000 1,622,000 257,000 257,000 Current liabilities Long-term liabilities 742,000 722.500 Common stock 100,000 Retained earnings 282,000 Total liabilities and equities 1,381,000 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 $145,500 to an investment banking firm The following information was also available Zambrano further agreed to pay an extra $84,800 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 adjusted expected payment for this contingency at $42,400. Soriano has a research and development process with an appraised value of $237,500. However the project has not yet reached technological feasibility and the project's assets have no alternative future use. Prepare Zambrano s journal entries to record the Soriano acquisition assuming its initial cash payment to the former owners was (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)