FB Corp. prepares its financial statements in accordance with IFRS. FB acquired $100\%$ of the outstanding common stock of Skarlet, Inc., for $$5,500,000.$ The purchase price included $$300,000$ to reimburse the former shareholders of Skarlet for legal fees incurred to complete the acquisition. The company also agreed to pay the seller an additional $$1$ if Skarlet generated $$5,000,000$ in net earnings during the first $2$ years after acquisition. At the acquisition date, the fair value of the contingent consideration was $$750,000.$ For each of the acquisition items, enter the amount that should be reflected in the line item on FB j s consolidated financial statements as of the acquisition date. Enter debit balances as positive values and credit balances as negative values. If an item is not included in any line item, enter zeros in each cell of the associated row.

SIMULATION SOLUTIONS

$\backslash$table$[[1,$Acquisition item,$\backslash$table$[[$Carrying$],[$amount at the$],[$acquisition date$]],\backslash$table$[[$Fair value at$],[$acquisition date$]],$Profit or loss,$\backslash$table$[[$Other$],[$comprehensive$],[$income$]],\backslash$table$[[$Total assets,$],[$excluding$],[$goodwill$]],$Total liabilities$],[2,\backslash$table$[[$Property$,$ plant$],[$and equipment$]],$$$4,000,000,$$$4,200,000,0,0,$$$4,200,000,0],[3,\backslash$table$[[$In$-$process$],[$research costs$]],0,1,320,000,0,0,1,320,000,0],[4,$Legal fees,$300,000,300,000,300,000,0,0,0],[5,\backslash$table$[[$Noncompete$],[$agreement with$],[$former owners$]],0,550,000,0,0,550,000,0],[6,$Bonds payable,$475,000,450,000,0,0,0,(450,000)$

Please explain why the numbers on the highlighted cells are there