On June $30,2024,$ Sundown Company reported the following account balances:

Receivables $ $69,300$ Current liabilities $ $(19,700)$

Inventory $79,750$ Long$-$term liabilities $(57,250)$

Buildings $($net$)85,000$ Common stock $(90,000)$

Equipment $($net$)32,900$ Retained earnings $(100,000)$

Total assets $ $266,950$ Total liabilities and equities $ $(266,950)$

On June $30,2024,$ Pelcore Company paid $$320,200$ cash for all assets and liabilities of Sundown, which will cease to exist as a separate entity. In connection with the acquisition, Pelcore paid $$15,700$ in legal fees. Pelcore also agreed to pay $$61,500$ to the former owners of Sundown contingent on meeting certain revenue goals during $2025.$ Pelcore estimated the present value of its probability adjusted expected payment for the contingency at $$19,400.$

In determining its offer, Pelcore noted the following pertaining to Sundown:

It holds a building with a fair value $$43,000$ more than its book value.

It has developed a database appraised at $$28,400,$ although it is not recorded in its financial records.

It has research and development activity in process with an appraised fair value of $$36,700.$ However, the project has not yet reached technological feasibility, and the assets used in the activity have no alternative future use.

Book values for the receivables, inventory, equipment, and liabilities approximate fair values.

Required:

Prepare Pelcore$$s accounting entries to record the combination with Sundown.