Pharma Company acquired the assets (with the exception of cash) and assumed the liabilities of Astra Company on January 2, 2020 paying $720,000 cash. Astra Company's December 31, 2019 balance sheet reflecting both book and fair values is shown below: Fair Value Book Value $72,000 86,000 110,000 369,000 237,000 $874,000 $83,000 180,000 153,000 229,000 229,000 $874,000 Accounts Receivable, net Inventory Land Buildings, net Equipment, net Total Accounts Payable Note Payable Common Stock, $2 par value Other Contributed Capital Retained Earnings Total $65,000 99,000 162,000 450,000 288,000 $1,064,000 As part of the negotiations, Pharma agreed to pay the former stockholders of Asta Company $200,000 if the postcombination earnings of the combined company (Pharma) reach certain levels during 2020 and 2021. The fair value of the contingent consideration was estimated to be $100,000 on the date of acquisition. Required: A. Record the journal entry on the books of Pharma Company to record the acquisition of Astra on January 2, 2020