On June 30, 2021, Streeter Company reported the following account balances:
On June 30, 2021, Princeton Company paid $310,800 cash for all assets and liabilities of Streeter, which will cease to exist as a separate entity. In connection with the acquisition, Princeton paid $15,100 in legal fees. Princeton also agreed to pay $55,600 to the former owners of Streeter contingent on meeting certain revenue goals during 2022. Princeton estimated the present value of its probability adjusted expected payment for the contingency at $17,900. In determining its offer, Princeton noted the following pertaining to Streeter: ∙ It holds a building with a fair value $43,100 more than its book value. ∙ It has developed a customer list appraised at $25,200, although it is not recorded in its financial records. ∙ It has research and development activity in process with an appraised fair value of $36,400. However, the project has not yet reached technological feasibility, and the assets used in the activity have no alternative future use. ∙ Book values for the receivables, inventory, equipment, and liabilities approximate fair values. Prepare Princeton’s accounting entries to record the combination with Streeter.