On Jan 2, 2018, A acquires all of the net assets of T, whose BV and FMV were as follows: Book Value Fair Market Value Accounts Receivable(net) 40,000 Land Patent Customer List Total Assets 5-yr 8% Bonds Payable 115,000 Common Stock Retained Earnings 1/1 105,000 Liab & Equity NSTRUCTIONS: 40,000 450,000 900,000 260,000 1,650,000 110,000 130,000 150,000 320,000 100,000 320,000 Prepare the journal entries that Acquirer Co. would make to record its acquisition of the net assets of Target assuming that it paid the following for its acquisition 1. to Target: $400,000 cash plus the issuance of a $1,000,000 10-year bond a. payable that had a fair market value of $1,000,000 2. POTENTIALLY to Target: $150,000 to be paid if, and only if, the net income generated from Target's patent for the following two years exceeded $500,000 per year. Acquirer estimated that the probablitity of payment at 40% to its outside attorneys: $160,000 to review the deal to the printers: $30,000 for the printing of the bonds issued 3. 4. During the measurement period. Acquirer decided that there was a 50% probability that it would have to pay the contingent liability. Prepare the journal entry to record te increased probability of payment b. Based upon the net income generated by the patent for the following years Acquirer was not required to make any payments under the contingency agreement. Prepare the journal entry that Acquirer would make to record the elimination of the contingency. C