7.2

Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,480,000 in cash. The book values and fair values of Pioneer's assets and liabilities were as follows: Fair Value Accounts Receivable Book Value $ 630,000 3,980,000 $ 530,000 Buildings 4,680,000 190,000 Equipment 100,000 Accounts Payable (870,000) (870,000) Net assets $ 3,840,000 $ 4,530,000 Required: 1. Calculate the amount Northern Equipment should report for goodwill. 2. Record Northern Equipment's acquisition of Pioneer Equipment Rental. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the amount Northern Equipment should report for goodwill. Goodwill Required 1 Required 2 > Required 1 Required 2 Record Northern Equipment's acquisition of Pioneer Equipment Rental. (If no entry is required for a Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the acquisition of Pioneer Equipment Rental. Note: Enter debits before credits. Transaction General Journal Credit 1 Debit