On May 1, Soriano Company reported the following account balances along with their estimated fair values:

ItemsCarrying AmountFair ValueReceivables$ 144,100$ 144,100Inventory77,40077,400Copyrights135,500509,500Patented technology901,000744,000Total assets$ 1,258,000$ 1,475,000Current liabilities$ 235,000$ 235,000Long-term liabilities686,000671,300Common stock100,0000Retained earnings237,0000Total liabilities and equities$ 1,258,0000

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 $133,500 to an investment banking firm.

The following information was also available:

• Zambrano further agreed to pay an extra $87,600 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 $43,800.
• Soriano has a research and development project in process with an appraised value of $236,000. However, the project has not yet reached technological feasibility, and the projects assets have no alternative future use.

Required:

a. and b. Prepare Zambranos journal entries to record the Soriano acquisition assuming its initial cash payment to the former owners was (a) $745,000 and (b) $848,700.

Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.