On January 1, 20X1 the Fair Values of Pink Coral's

On January 1, 20X1 the fair values of Pink Coral's net assets were as follows:
$\begin{array}{lr}\text { Current Assets } & 100,000 \\\text { Equipment } & 150,000 \\\text { Land } & 50,000 \\\text { Buildings } & 300,000 \\\text { Liabilities } & 80,000\end{array}$ On January 1, 20X1, Blue Reef Company purchased the net assets of the Pink Coral Company by issuing 100,000 shares of its $1 par value stock when the fair value of the stock was $6.20. It was further agreed that Blue Reef would pay an additional amount on January 1, 20X3, if the average income during the 2-year period of 20X1-20X2 exceeded $80,000 per year. The expected value of this consideration was calculated as $184,000; the measurement period is one year.
Required: Prepare Blue Reef's entries:
a) on January 1, 20X1 to record the acquisition
b) on August 1, 20X1 to revise the contingent consideration to $170,000
c) on January 1, 20X3 to settle the contingent consideration clause of the agreement for $175,000