Gull Company purchased the net assets of Hart Company on January 1, 2021, and made the following entry to record the purchase:

Current Assets..........................................................

100,000

Equipment.............................................................

150,000

Land...................................................................

50,000

Buildings..............................................................

300,000

Goodwill.............................................................

100,000

Liabilities......................................................

96,000

Common Stock ($7 par)....................................

84,000

Paid-In Capital in Excess of Par...........................

520,000

Make the required entry on the given dates, for each of the followingindependentcontingency agreements:

1.An additional cash payment would be made on January 1, 2024, equal to three times the amount by which average annual earnings of the Hart Division exceed $45,000 per year, prior to January 1, 2024. Net income was $87,000 in 2021, $91,000 in 2022 and $38,000 in 2023.Assume that the liabilities recorded on January 1, 2021, include an estimated contingent liability recorded at an estimated amount $90,000.

2.Added shares would be issued on January 1, 2023, equal in value to twice the amount by which average annual earnings of the Hart Division exceed $76,500 per year, prior to January 1, 2023. Net income was $60,000 in 2021 and $84,000 in 2022.The market price of the shares on January 1, 2023, was $9.

3.Added shares would be issued on January 1, 2023, to compensate for any fall in the value of Gull common stock below $13 per share.The settlement would be to cure the deficiency by issuing added shares based on their fair value on January 1, 2023.The market price of the shares on January 1, 2023, was $10.