Carrying Amount	Fair Value
Receivables	$	189,500	$	189,500
Inventory		90,000		90,000
Copyrights		154,500		526,500
Patented technology		854,000		675,000
Total assets	$	1,288,000	$	1,481,000
Current liabilities	$	207,000	$	207,000
Long-term liabilities		686,000		667,200
Common stock		100,000
Retained earnings		295,000
Total liabilities and equities	$	1,288,000

On May 1, 2014, 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 $114,500 to an investment banking firm on May 1.

On June 1, 2014, obtained possession of the assets and liabilities of Soriano Company and recorded these assets and liabilities on their accounting records.

The following information was also available:

	Zambrano further agreed to pay an extra $80,200 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 $40,100.
	Soriano has a research and development project in process with an appraised value of $216,000. However, the project has not yet reached technological feasibility and the projects assets have no alternative future use.

Prepare Zambranos journal entries to record the Soriano acquisition assuming its initial cash payment to the former owners was as follows:(If no entry is required for a transaction, select "No journal entry required" in the first account field.)

a.

$764,600.