On May 1, Summerlight Co. reported the following account balances along with their estimated fair values: Receivables Inventory Copyrights Patented technology Total assets Carrying Amount Fair Value $ 137,500 $ 137,500 82,000 82,000 148,500 511,500 903.000 713.000 1,271,000 1.444.000 238,000 $ 238,000 674,000 657,200 100,000 259,000 $ 1,271,000 Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and equities On that day, Poppop paid cash to acquire all of the assets and liabilities of Summerlight, which will cease to exist as a separate entity. To facilitate the merger, Poppop also paid $144,000 to an investment banking firm. The following information was also available: Poppop further agreed to pay an extra $76,400 to the former owners of Summerlight only if they meet certain revenue goals during the next two years. Poppop estimated the present value of its probability adjusted expected payment for this contingency at $38,200. Summerlight has a research and development project in process with an appraised value of $231,500. However, the project has not yet reached technological feasibility and the project's assets have no alternative future use. Prepare Poppop's journal entries to record the Summerlight acquisition assuming its initial cash payment to the former owners was (a) $723,600 & (b) $836,900. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). TT T Arial 3 (12pt) TOS - E- Path:p Words:0