Current Attempt in Progress During $2024,$ the likelihood of meeting the post combination earnings goal increased. As a result, at the end of $2024,$ the

estimated fair value of the contingent consideration increased to $$130,900.$ Prepare any journal entry needed to account for the

change in the fair value of contingent consideration. $($Credit account titles are automatically indented when the amount is entered. Do

not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. List debit entry before

credit entry.$)$

$($c$)$

During $2025,$ the likelihood of meeting the post combination earnings goal significantly decreased and the contingent

consideration target was not met. Prepare any journal entry needed to account for the change in the fair value of contingent

consideration. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is

required, select $"$No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.$)$

Sarasota Company acquired the assets $($except for cash$)$ and assumed the liabilities of Pharoah Company on January $1,2024,$ paying

$$737,000$ cash. Pharoah Company's December $31,2023,$ balance sheet, reflecting both book values and fair values, showed:

As part of the negotiations, Sarasota Company agreed to pay the former stockholders of Pharoah Company $$203,300$ cash if the post$-$

combination earnings of the combined company $($Sarasota$)$ reached certain levels during $2024$ and $2025.$ The fair value of contingent

consideration was estimated to be $$111,600$ on the date of acquisition.

$($a$)$