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Fresh Cut Corporation purchased all the outstanding common stock of Premium Meats for $10,600,000 in...

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Accounting

Fresh Cut Corporation purchased all the outstanding common stock of Premium Meats for $10,600,000 in cash. The book values and fair values of Premium Meats' assets and liabilities were: Book Value Fair Value Accounts Receivable $ 1,100,000 $ 900,000 Equipment 7,800,000 9,200,000 Patents 160,000 1,000,000 Notes Payable (1,300,000 ) (1,300,000 ) Net assets $ 7,760,000 $ 9,800,000 Required: 1. Calculate the amount Fresh Cut should report for goodwill. (Enter your answer in millions rounded to 2 decimal places (i.e., $5,500,000 should be entered as 5.50).) 2. Record Fresh Cut's acquisition of Premium Meats. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in millions rounded to 2 decimal places (i.e., 5,550,000 should be entered as 5.55).)

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