Pham Company acquired the assets (except for cash) and assumed the liabilities of Senn Company on January 1, 2014, paying $690,800 cash. Senn Company's December 31, 2013, balance sheet, reflecting both book values and fair values, showed: Accounts receivable (net) Inventory Land Buildings (net) Equipment (net) Total Book Value $74,400 91,600 109,600 338,600 260,600 $874,800 Fair Value $67,000 104,200 162,900 421,300 308,200 $1,063,600 $78,200 172,400 Accounts payable Note payable Common stock, $2 par value Other contributed capital Retained earnings Total $78,200 172,400 149,500 210,500 264,200 $874,800 As part of the negotiations, Pham Company agreed to pay the former stockholders of Senn Company $198,600 cash if the postcombination earnings of the combined company (Pham) reached certain levels during 2014 and 2015. The fair value of contingent consideration was estimated to be $130,700 on the date of acquisition. Record the journal entry on the books of Pham Company to record the acquisition on January 1, 2014. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2014 |