On May 1, Soriano Co. reported the following account balances along with their estimated fair values: Carrying AmountFair Value Receivables$90,000 $90,000 Inventory 75,000 75,000 Copyrights 125,000 480,000 Patented technology 825,000 700,000 Total assets$1,115,000 $1,345,000 Current liabilities$160,000 $160,000 Long-term liabilities 645,000 635,000 Common stock 100,000 Retained earnings 210,000 Total liabilities and equities$1,115,000 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 $100,000 to an investment banking firm. The following information was also available: Zambrano further agreed to pay an extra $70,000 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 $35,000. Soriano has a research and development project in process with an appraised value of $200,000. However, the project has not yet reached technological feasibility, and the project’s assets have no alternative future use. a