U On May 1, Soriano Co. reported the following account balances along with their estimated fair values: Receivables Inventory Copyrights Patented technology Total assets Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and equities Carrying Amount Fair Value $ 187,100 $ 187,100 79,400 79,400 126,500 502,500 854,000 649,000 $ 1,247,000 $ 1,418,000 $ 232,000 232,000 695,000 683,800 100,000 220,000 $ 1,247,000 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 $140,000 to an investment banking firm. The following information was also available: Zambrano further agreed to pay an extra $85,200 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 $42,600. Soriano has a research and development project in process with an appraised value of $211,500. 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 (al $646.400 & (b) $761,300. (If no entry is required for a transaction/event, select "No journal entry reauired" in the first account Journal entry worksheet Record the expenses related to the combination. Assume its initial cash payment to the former owners was $646,400. Note: Enter debits before credits. Transaction 2 Credit General Journal (Professional services expense Cash Debit 140,000 140,000 Journal entry worksheet Record the acquisition of Soriano Co. Assume its initial cash payment to the former owners was $761,300. Note: Enter debits before credits. Transaction 3 General Journal Debit Credit Journal entry worksheet