On May 1, Soriano Co. reported the following account balances along with their estimated fair values: Carrying Amount Receivables Inventory Copyrights Patented technology Total assets Current liabilities Long term liabilities Common stock Retained earnings Total liabilities and equities $ 152,480 $ 85,600 174,088. 836,000 Fair Value 152,400 85,600 558,000 618,000 $ 1,248,080 $ 1,414,000 188,000 $ 188,000 649,700 $ 664,000 100,000 296,000 $ 1,248,000 On that day, Zambrano paid cash to acquire all of the assets and liabilities of Soriano, which will cease to exist as a separate entity. To facilitate the merger, Zambrano also paid $113,000 to an investment banking firm. The following information was also available: Zambrano further agreed to pay an extra $86,200 to the former owners of Soriano only if they meet certain revenue goals during the next two years. Zambrano estimated the present value of its probability adjusted expected payment for this contingency at $43,100. Soriano has a research and development project in process with an appraised value of $227,500. However, the project has not yet reached technological feasibility and the project's assets have no alternative future use. a&b. Prepare Zambrano's journal entries to record the Soriano acquisition assuming its initial cash payment to the former owners was (e) $741,400 & (b) $861,500. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction 1 1 Receivables Inventory Answer is not complete. General Journal Copyrights Patented technology Research and development asset Current liabilities Long-term liabilities Cash Contingent performance lability Gain on bargain purchase 6 6 6 6 6 6 6 6 6 6 Debit Credit 152,400 85,600 558,000 618,000 227,500 188,000 649,700 741,400 43,100 19,300 2 2 Professional services expense 113,000 Cash 113,000 3 3 Receivables Inventory 152,400 3 85,600 Copyrights Patented technology Research and development asset Goodwill Current liabilities Long-term liabilities Cash Contingent performance liability 4 4 Professional services expense Cash 558,000 618,000 227,500 85,000 x 188,000 649,700 861,500 35,000 x 3 113,000 113,000