Flounder Company acquired the assets (except for cash) and assumed the liabilities of Sunland Company on January 1, 2024, paying $728,000 cash. Sunland Company’s December 31, 2023, balance sheet, reflecting both book values and fair values, showed: Book Value Fair Value Accounts receivable (net) $80,000 $72,900 Inventory 94,000 108,200 Land 112,300 167,100 Buildings (net) 377,000 450,000 Equipment (net) 245,000 291,800 Total $908,300 $1,090,000 Accounts payable $91,000 $91,000 Note payable 188,000 188,000 Common stock, $2 par value 161,000 Other contributed capital 237,000 Retained earnings 231,300 Total $908,300 As part of the negotiations, Flounder Company agreed to pay the former stockholders of Sunland Company $203,200 cash if the post-combination earnings of the combined company (Flounder) reached certain levels during 2024 and 2025. The fair value of contingent consideration was estimated to be $103,500 on the date of acquisition. (a) Record the journal entry on the books of Pham Company to record the acquisition on January 1, 2024. (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 0 for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit Jan. 1, 2024 Accounts Receivable Inventory 108200 Land 167100 Buildings 450000 Equipment 291800 Goodwill Accounts Payable 91000 Note Payable 188000 Liability for Contigent Consideration 103500 Cash 728000 No Entry List of AccountsAssistance Used Last saved 21 hours ago.Saved work will be auto-submitted on the due date. Auto-submission can take up to 10 minutes.Attempts: 0 of 2 used (b) 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 $121,900. Prepare any journal entry needed to account for the change in the fair value of