shares on January 1. Promise paid $300,000 and issued $200,000 in long-term liabilities and paid $30,000 in legal fees. Promise also agreed to pay $80,000 to the former owners of SaidSo contingent on meeting certain revenue goals during the following year. Promise estimated the present value of its probability adjusted expected payment for the contingency or contingent obligation at $23,000 Precombination book values for SaidSo, Inc. are as follows: Current assets Equipment Buildings $ 80,000 90,000 175,000 Goodwill Total Current liabilities Common stock Retained earnings Revenues Expenses Total 33,000 $ 378,000 $ (45,000) (180,000) (115,000) (138,000) 100,000 $ (378,000) Promise's appraisal of SaidSo found two balance sheet accounts that differed from fair value. Equipment was undervalued by $15,000 and Buildings by $5,000. Promise noted that SaidSo has unrecorded client contracts worth $60,000 and research and development activity in process with an appraised fair value of $90,000