Preacquisition Contingency On January 3, 2018, Prance Corporation purchased all of the business operations of Step Corporation for $10 million cash. The acquisition is recorded as a merger. Steps identifiable assets and liabilities are listed below at their fair values:Current assets $ 900,000Plant and equipment $5,000,000Estimated liability: defective product lawsuits (500,000)Other liabilities (3,000,000)The $500,000 estimated liability represented Steps best estimate of likely losses due to lawsuits pending as of January 3, 2018. Later in 2018, as unfavorable information regarding the January 3, 2018 status of defective products became available, the estimated liability was increased to $650,000. Then, in late 2019, after observing that competitors were more frequently winning similar lawsuits, management revised the estimated liability downward to $300,000.Required Prepare the entries made by Prance to record the original acquisition entry and the subsequent value changes in 2018 and 2019