On May 1, Soriano Company reported the following account balances along with their estimated fair values: Receivables Inventory Copyrights Account Patented technology Total assets Current liabilities Long-term liabilities Common stock Retained earnings Carrying Amount Fair Value $ 245,300 79,200 125,500 875,000 $ 1,325,000 $ 253,000 740,000 100,000 232,000 $ 1,325,000 $ 245,300 79,200 505,500 658,000 $ 1,488,000 $ 253,000 729,800 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 $100,000 to an investment banking firm. The following information was also available: Zambrano further agreed to pay an extra $71,200 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 $35,600. Soriano has a research and development project in process with an appraised value of $221,500. However, the project has not yet reached technological feasibility, and the project's assets have no alternative future use. Required: a. Determine whether there is a gain on bargain purchase or goodwill if $670,000 of cash was paid for Soriano. b. Determine whether there is a gain on bargain purchase or goodwill if $790,100 of cash was paid for Soriano.