On May $1,$ Beta Co$.$ reported the following account balances along with their estimated fair values:

Carrying Amount

Fair Value

Receivables

$

$219,000$

$

$219,000$

Inventory

$92,000$

$92,000$

Copyrights

$152,000$

$533,000$

Patented technology

$832,000$

$677,000$

Total assets

$

$1,295,000$

$

$1,521,000$

Current liabilities

$

$256,000$

$

$256,000$

Long$-$term liabilities

$685,000$

$673,000$

Common stock

$100,000$

Retained earnings

$254,000$

Total liabilities and equities

$

$1,295,000$

On that day, Alpha paid cash $$743,800$ to acquire all of the assets and liabilities of Beta, which will cease to exist as a separate entity. To facilitate the merger, Alpha also paid $$101,500$ to an investment banking firm.

The following information was also available:

Alpha further agreed to pay an extra $$81,400$ to the former owners of Beta only if they meet certain revenue goals during the next two years. Alpha estimated the present value of its probability adjusted expected payment for this contingency at $$40,700.$

Beta has a research and development project in process with an appraised value of $$210,500.$ However, the project has not yet reached technological feasibility and the project$$s assets have no alternative future use.

In recording acquisition of Beta, Alpha would record gain on bargain purchase of: