Cupcake Company acquired all the net assets of Succo Company on December 31, 2013, for $2,288,140 cash. The balance sheet of Succo Company Immediately prior to the acquisition showed: Fair value Current assets Plant and equipment Total Book value $ 961,000 1,154,000 $961,360 1,306,770 $2,115,000 $2,268,130 Liabilities $193,000 $214,010 Common stock 434,780 Other contributed capital 572,000 916,000 $2,115,780 Retained earnings Total As part of the negotiations, Cupcake Co. agreed to pay the stockholders of Succo $378,480 cash if the post-combination earnings of Cupcake Co. averaged $2,288,140 or more per year over the next two years. The estimated fair value of the contingent consideration was $144,120 on the date of the acquisition. I