Acquisition Analysis Omega Corp. was incorporated on 1 January 2007 and acquired the business of Alpha Partners from 1 October 2006. The purchase price was $800,000, paid on 31 December 2006, including $40,000 interest. Below is the profit and loss account for the year ending 31 December 2007:

Account	Amount
Sales	600,000
Cost of goods sold	350,000
Gross profit	250,000
Wages and salaries	80,000
Rent	30,000
Distribution expenses	20,000
Interest paid to vendors	40,000
Depreciation	15,000
Miscellaneous expenses	10,000
Net profit	55,000

Required: a. Split the profit between pre- and post-incorporation periods. b. Record journal entries for the acquisition. c. Calculate the goodwill on acquisition.