Pritano Company acquired all the net assets of Succo Company on December 31, 2013, for $2,066,330 cash. The balance sheet of Succo Company immediately prior to the acquisition showed:

Book value Fair value

Current assets$1,037,260$1,037,260

Plant and equipment 1,008,590 1,349,410

Total $2,045,850 $2,386,670

Liabilities $172,430 $211,430

Common stock 504,230

Other contributed capital605,100

Retained earnings 764,090

Total $2,045,850

As part of the negotiations, Pritano agreed to pay the stockholders of Succo $356,320 cash if the post-combination earnings of Pritano averaged $2,066,330 or more per year over the next two years. The estimated fair value of the contingent consideration was $147,260 on the date of the acquisition.