[The following information applies to the questions displayed below.] On July 1, TruData Company Issues 10,000 shares of its common stock with a $5 par value and a $50 fair value in exchange for all of Webstat Company's outstanding voting shares. Webstat's precombination book and fair values are shown below along with book values for TruData's accounts. Revenues (1/1 to 7/1) Expenses (1/1 to 7/1) Retained earnings, 1/1 Cash and receivables Inventory Patented technology (net) Land Trubata Webstat Webstat Book Values Book Values Fair Values $ (279,000) $ (160,000) 96,000 144,000 (134,000) (152,000) 190,000 76,000 $ 76,000 168,000 150,000 170,000 246,000 184,000 212,000 416,000 Buildings and equipment (net) Liabilities 202,000 236,000 80,000 88,000 88,000 Common stock (514,000) (308,000) Additional paid-in capital (372,000) (76,000) (348,000) (9,000) (36,000) Problem 2-16 (Algo) (LO 2-5, 2-9, 2-10) On its acquisition-date consolidated balance sheet, what amount should TruData report as goodwill? ICES On May 1, Soriano Co. reported the following account balances along with their estimated fair values: Carrying Amount Fair Value Receivables Inventory Copyrights Patented technology Total assets Current liabilities" Long-term liabilities Common stock Retained earnings Total liabilities and equities $ 219,000 $ 92,000 152,000 832,000 219,000 92,000 533,000 677,000 $ 1,295,000 $ 1,521,000 $ 256,000 $ 256,000 673,000 685,000 100,000 254,000 $ 1,295,000 On that day, Zambrano paid cash to acquire all of the assets and liabilities of Soriano, which will cease to exist as a separate entity. To facilitate the merger, Zambrano also paid $101,500 to an investment banking firm. The following information was also available: Zambrano further agreed to pay an extra $81,400 to the former owners of Soriano only if they meet certain revenue goals during the next two years. Zambrano estimated the present value of its probability adjusted expected payment for this contingency at $40,700. Soriano has a research and development project in process with an appraised value of $210,500. However, the project has not yet reached technological feasibility and the project's assets have no alternative future use. a&b. Prepare Zambrano's journal entries to record the Soriano acquisition assuming its initial cash payment to the former owners was (a) $743.800 & (b) $862.800. (If no entry is required for a transaction/event, select "No journal entry required" in the first account