2. Chapter 2 - Net Asset Acquisition (Ch 2 in class ex, text 45) Donner Corporation had the following account balances and fair values at December 31, 2023 when the net assets were acquired by Valueton Company. Customer relationships Patents In-process R&D Work force Equipment Book Values Fair Values 10,000 80,000 -0- 300,000 -0- 100,000 -0- 20,000 140,000 140,000 Valueton Company acquired the net assets of Donner Corporation by issuing 50,000 shares of its own $2 par value common stock valued at $12 per share. Valueton paid $10,000 in direct clerical and legal costs of the combination. Valueton also agreed to pay an additional $100,000 if Donner achieved certain profit goals within the first three years. The contingent payment was determined to have a fair value of $35,000. a. Assuming the net assets acquired are NOT considered a business: 1) Determine the total purchase price and allocate the purchase price to the net assets acquired. 2) Prepare the journal entries to record the net asset acquisition at December 31, 2023. 3) At December 31, 2026, Donner achieved its profit goals and was paid the contingent consideration. Prepare the journal entry to record the payment. b. Assuming the net assets acquired are considered a business: 1) Determine the total purchase price and allocate the purchase price to the net assets acquired. 2) Prepare the journal entries to record the net asset acquisition at December 31, 2023. - 3) At December 31, 2026, Donner achieved its profit goals and was paid the contingent consideration. Prepare the journal entry to record the payment.