Serano Corporation's Trial Balance Is as Follows An Analysis of Serano's Assets and Liabilities Reveals That Its

Serano Corporation's trial balance is as follows:
$$\begin{array} { | l | c | } \hline & \begin{array} { c } \text { Serano } \\\text { Dr (Cr) }\end{array} \\\hline \text { Cash and receivables } & \$ 200 \\\hline \text { Inventories } & 600 \\\hline \text { Property, plant, and equipment, net } & 7,500 \\\hline \text { Liabilities } & \{ 7,600 \} \\\hline \text { Capital stock } & \{ 720 \} \\\hline \text { Ret ained earnings } & 20 \\\hline\end{array}$$ An analysis of Serano's assets and liabilities reveals that its inventories are overvalued by $100 and its property, plant and equipment is overvalued by $3,000. In addition, the following items are not currently reported on Serano's balance sheet:
•Customer contracts, valued at $30
•In-process research and development, valued at $200
•Expected future warranty liabilities with a present value of $15
On January 2, 2020, Pago issues new stock with a market value of $700 to acquire the assets and liabilities of Serano. Stock registration fees are $50, paid in cash. Consulting, accounting, and legal fees connected with the merger are $100, paid in cash. In addition, Pago enters into an earnings contingency agreement, whereby Pago will pay the former shareholders of Serano an additional amount if Serano's performance meets certain minimum levels. The present value of the contingency is estimated at $25.
Required
a. Prepare the journal entry or entries Pago makes to record the acquisition.
b. Now assume that during March, 2020, new information comes in regarding the value of Serano's property, plant and equipment at the date of acquisition. It is determined that the property was actually worth $800 less than previously estimated. Make the entry to record this new information.