Alpha also paid $$101,500$ to an investment banking firm.

The following information was also available:

Alpha further agreed to pay an extra $$81,400$ to the former owners of Beta

only if they meet certain revenue goals during the next two years. Alpha

estimated the present value of its probability adjusted expected payment

for this contingency at $$40,700.$

Beta 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.

In recording acquisition of Beta, Alpha would record gain on bargain purchase

of:

$$36,200.$

$$18,000.$

$$0$

$$58,700$