On May 1, Soriano Co. reported the following account balances along with their estimated fair values: Carrying Amount Fair Value Receivables $ 196,800 $ 196,000 Inventory 85,000 85,000 Copyrights 171,000 613,000 Patented technology 874,000 656,000 Total assets $1,326,000 $1,550,000 Current liabilities $ 216,600 $ 216,000 Long-term liabilities 742,000 725,600 Common stock 100,000 Retained earnings 268,000 Total liabilities and equities $1,326,000 5 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 $125,500 to an investment banking firm. The following information was also available: Zambrano further agreed to pay an extra $78,200 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 $39,100. Soriano has a research and development project in process with an appraised value of $249,000. 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) $796,800 & (b) $914,900. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list EX 1 Record the acquisition of Soriano Co. Assume its initial cash payment to the former owners was $796,800. > 2 Record the expenses related to the combination. Assume its initial cash payment to the former owners was $796,800. it to the 3 Record the acquisition of Soriano Co. Assume its initial cash payment to the former owners was $914,900. it Credit 4 Record the expenses related to the combination. Assume its initial cash payment to the former owners was $914,900. Note := journal entry has been entered Receivables Inventory Copyrights Patented technology Total assets Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and equities Carrying Amount Fair Value $ 196,000 $ 196,000 85,000 85,000 171,000 613,000 874,000 656,000 $1,326,000 $1,550,000 $ $ 216,000 $ 216,000 742,000 725,600 100,000 268,900 $1,326,000 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 $125,500 to an investment banking firm. The following information was also available: 5 Zambrano further agreed to pay an extra $78,200 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 $39.100. Soriano has a research and development project in process with an appraised value of $249,000. 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) $796,800 & (b) $914,900. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet the Record the acquisition of Soriano Co. Assume its initial cash payment former owners was $796,800. Note: Enter debits before credits. Transaction General Journal Debit Credit 1