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Fresh Cut Corporation purchased all the outstanding common stock of Premium Meats for $10,100,000 in...

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Accounting

Fresh Cut Corporation purchased all the outstanding common stock of Premium Meats for $10,100,000 in cash. The book values and fair values of Premium Meats' assets and liabilities were:

Book Value Fair Value
Accounts Receivable $ 850,000 $ 650,000
Equipment 7,550,000 8,950,000
Patent 110,000 750,000
Notes Payable (800,000) (800,000)

Net assets $ 7,710,000 $ 9,550,000

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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