On May 1, Soriano Co reported the following account balances along with their estimated fair values Carrying AmountFair ValueReceivables$229,100 $229,100 Inventory94,400 94,400 Copyrights165,500 579,500 Patented technology857,000 694,000 Total assets$1,346,000 $1,597,000 Current liabilities$236,000 $236,000 Long term liabilities717,000 702,100 Common stock100,000 Retained earnings293,000 Total liabilities and equities$1,346,000 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 $137,500 to an investment banking firm The following information was also available Zambrano further agreed to pay an extra $87,200 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 $43,600 Soriano has a research and development project in process with an appraised value of $213,000 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 (a) $806,500 (b) $916,900 (If no entry is required for a transaction event, select No journal entry required in the first account field )

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On May 1, Soriano Co. reported the following account balances along with their estimated fair values: Carrying AmountFair ValueReceivables$229,100 $229,100 Inventory94,400 94,400 Copyrights165,500 579,500 Patented

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

Carrying AmountFair ValueReceivables$229,100

$229,100

Inventory94,400

94,400

Copyrights165,500

579,500

Patented technology857,000

694,000

Total assets$1,346,000

$1,597,000

Current liabilities$236,000

$236,000

Long-term liabilities717,000

702,100

Common stock100,000

Retained earnings293,000

Total liabilities and equities$1,346,000

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 $137,500 to an investment banking firm.

The following information was also available:

Zambrano further agreed to pay an extra $87,200 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 $43,600.
Soriano has a research and development project in process with an appraised value of $213,000. 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 (a) $806,500 & (b) $916,900.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)