On May 1, Soriano Co. reported the following account balances along with their estimated fair values: Receivables Inventory Copyrights Patented technology Total assets Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and equities Carrying Amount Fair Value $ 79,400 $ 79,400 90,600 90,600 133,000 556,000 895,000 764,000 $ 1,198,000 $ 1,490,000 $ 234,000 234,000 638,900 100,000 214,000 $ 1,198,000 650,000 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 $107,500 to an investment banking firm. The following information was also available: Zambrano further agreed to pay an extra $79,000 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 $39,500. Soriano has a research and development project in process with an appraised value of $248,500. 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 (a) $802,000 & (b) $928,500. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list 1 Record the acquisition of Soriano Co. Assume its initial cash payment to the former owners was $802,000. to the 2 Record the expenses related to the combination. Assume its initial cash payment to the former owners was $802,000. 3 Record the acquisition of Soriano Co. Assume its initial cash payment to the former owners was $928,500. it Credit 4 Record the expenses related to the combination. Assume its initial cash payment to the former owners was $928,500. Note : = journal entry has been entered Record entry Clear entry View general journal