Branson paid $500,100 cash for all of the outstanding common stock of Wolfpack, Inc., on January 1, 2014 On that date, the subsidiary had a book value of $367,000 (common stock of $200,000 and retained earnings of $167,000), although various unrecorded royalty agreements (10-year remaining life) were assessed at a $132,000 fair value. Any remaining excess fair value was considered goodwill In negotiating the acquisition price, Branson also promised to pay Wolfpack's former owners an additional $77,000 if Wolfpack's income exceeded $150,000 total over the first two years after the acquisition. At the acquisition date, Branson estimated the probability-adjusted present value of this contingent consideration at $53,900. On December 31, 2014, based on Wolfpack's earnings to date Branson increased the value of the contingency to $61,600 During the subsequent two years, Wolfpack reported the following amounts for income and dividends Dividends Net Income Declared 2014 2015 $ 78,700 $ 25,000 35,000 88,700 In keeping with the original acquisition agreement, on December 31, 2015, Branson paid the additional $77,000 performance fee to Wolfpack's previous owners Prepare each of the following: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)