1. On July 1, 2020, Blossom Corporation acquired Crane Company for $1,008,000 cash. At the time of purchase, Cranes balance sheet showed assets of $868,000 and liabilities of $280,000. The fair value of Cranes assets is estimated to be $1,064,000.

Compute the amount of goodwill acquired by Blossom.

2.Prepare the journal entry for the salaries and wages paid. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Total payroll of Blossom Co. was $1,900,000, of which $280,000 represented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of $7,000 was $1,460,000. Income taxes withheld were $468,000. The state unemployment tax is 1.2%, the federal unemployment tax is.8%, and the F.I.C.A. tax is 7.65% on an employee's salaries and wages to $128,400 and 1.45% in excess of $128.400. (a) Prepare the journal entry for the salaries and wages paid. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit