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.

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$ 83,900 70,250 78,900 $ (12,900) (54,250) (90,000) (100,000) $(257.150) Receivables Current liabilities Inventory Buildings (net) Equipment (net) Long-term liabilities Common stock 24,100 Retained earnings Total assets $257,150 Total liabilities and equities