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

	Carrying Amount		Fair Value
Receivables	$	143,600	$	143,600
Inventory		76,400		76,400
Copyrights		136,000		577,000
Patented technology		913,000		753,000
Total assets	$	1,269,000	$	1,550,000
Current liabilities	$	197,000	$	197,000
Long-term liabilities		676,000		658,300
Common stock		100,000
Retained earnings		296,000
Total liabilities and equities	$	1,269,000

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 $141,000 to an investment banking firm.

The following information was also available:

	Zambrano further agreed to pay an extra $85,000 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 $42,500.
	Soriano has a research and development project in process with an appraised value of $244,000. However, the project has not yet reached technological feasibility and the projects assets have no alternative future use.

Prepare Zambranos journal entries to record the Soriano acquisition assuming its initial cash payment to the former owners was (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

a. $872,800

Part 1: Record the acquisition of Soriano Co

Receivables	NEED ANSWER
Inventory	NEED ANSWER
Copyrights	NEED ANSWER
Patented Technology	NEED ANSWER
Research & Development Asset	NEED ANSWER
Current Liabilities		NEED ANSWER
Long Term Liabilities		NEED ANSWER
Cash		$872,800
Contingent performance liability		NEED ANSWER
Gain on bargain purchase		NEED ANSWER

Part 2: Record the expenses related to the combination

Professional Services Expense	NEED ANSWER
Cash		NEED ANSWER

b. $982,000

Part 1: Record the acquisition of Soriano CO.

Receivables	NEED ANSWER
Inventory	NEED ANSWER
Copyrights	NEED ANSWER
Patented Technology	NEED ANSWER
Research & Development Asset	NEED ANSWER
Current Liabilities		NEED ANSWER
Long Term Liabilities		NEED ANSWER
Cash		$982,000
Contingent performance liability		NEED ANSWER
Gain on bargain purchase		NEED ANSWER

Part 2: Record the expenses related to the combination

Professional Services Expense	NEED ANSWER
Cash		NEED ANSWER