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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 $188,400 $ 188,400 76,600 522,000 646,000 76,600 146,000 864,000 Total assets $1,275,000 $ 1,433,000 Current liabilities $182,000 $ 82,000 682,000 Long-term liabilities Common stock 700,000 100,000 293,000 Retained earnings Total liabilities and equities $ 1,275,000 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 $123,000 to an investment banking irm The following information was also available . Zambrano further agreed to pay an extra $74,000 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 $37,000 Soriano has a research and development project in process with an appraised value of $230,000 However, the project has not yet reached technological feasibility and the project's assets have no alternative future use Prepare Zambrano's journal entries to record the Soriano acquisition assuming its initial cash payment to the former owners was (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. $746,500

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