Recording a Merger Petra Corporation paid $10 million in cash to acquire the assets and liabilities of Salisbury Company. Petra also agreed to make an additional cash payment in the future, with an expected present value of $500,000, if certain performance targets are met. Petra paid legal and consulting fees of $400,000 in cash in connection with the merger. A comparison of book and fair values of Salisbury's assets and liabilities follows: (in thousands) Book Value Fair Value Current assets $ 400 $350 Property and equipment, net 4,600 1,600 Patents and trademarks 1,500 Current liabilities (600) (600) Long-term debt (2,900) (3,000) Net assets $2,300 $ (150) 800 Salisbury also has previously unreported developed technology, valued at $2 million, that meets ASC Topic 805 criteria for capitalization. Required Prepare the journal entry or entries made by Petra to record the business combination as a merger