Business Acquisition Rho Corp. was incorporated on 1 April 2014 and took over the business of Sigma Partners from 1 January 2014. The purchase price was $1,500,000, paid on 30 June 2014, with $75,000 interest. Below is the profit and loss account for the year ending 31 December 2014:

Account	Amount
Sales	1,000,000
Cost of goods sold	600,000
Gross profit	400,000
Wages and salaries	120,000
Rent	30,000
Distribution expenses	25,000
Interest paid to vendors	75,000
Depreciation	20,000
Miscellaneous expenses	15,000
Net profit	115,000

Required: a. Show the allocation of profits between pre- and post-incorporation periods. b. Prepare the journal entries for the acquisition. c. Calculate the goodwill arising from the acquisition.