On May 1, Soriano Co. reported the following account balances along with their estimated fair values:

• Soriano has a research and development project in process with an appraised value of $248,500. However, the project has not yet reached technological feasibility and the project's assets have no alternative future use.

Prepare Zambrano's journal entries to record the Soriano acquisition assuming its initial cash payment to the former owners was (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

a. $802,000.

b. $928,500.