Required information Use the following information to answer questions 12-13 The sowowing nformation appies to the questions displayed below, On May 1, Donovan Company reported the following account balances $111,000 239,500 $350, 500 assets Buildings&equipment (net) Total assets Liabilities Conmon stock Retained earnings Total liabilities and $350,500 equities $ 67,500 150,000 133,000 On May 1, Beasley pald $449,600 in stock (fair value) for all of the assets and liabilities of Donovan, which will cease to exist as a separate entity. In connection with the merger, Beasley incurred $17,200 in accounts payable for legal and accounting fees Beasley also agreed to pay $79,600 to the former owners of Donovan contingent on meeting certain revenue goals during the tollowing year. Beasley estimated the present value of its probability adjusted expected payment for the contingency at $23,000. In determining its offer, Beasley noted the following: Donovan hoids a building with a fair value $34,200 more than its book value .Donovan has developed unpatented technology appralsed at $34,900, although is it not recorded in its .Donovan has a research and development activity in process with an appraised fair value of $48,500. The . Book values for Donovan's current assets and llabililities approximate fair values inancial records project has not yet reached technological feasibty Problem 2-12 (LO 2-4, 2-5) 12. What should Beasley record as total liabilities incurred or assumed in connection with the Donovan merger? Muitiple Choice $107,700. $150,000. $84,700. $17,200