Business Takeover Delta Inc. was incorporated on 1 January 2022 and took over the business of Gamma & Co. from 1 October 2021. The purchase price agreed was $800,000, payable on 31 March 2022, including $40,000 interest. Below is the profit and loss account for the year ending 31 December 2022:

Account	Amount
Sales	700,000
Cost of goods sold	350,000
Gross profit	350,000
Wages and salaries	100,000
Rent	30,000
Distribution expenses	25,000
Interest paid to vendors	40,000
Depreciation	20,000
Miscellaneous expenses	15,000
Net profit	120,000

Required: a. Allocate profits between the pre- and post-incorporation periods. b. Record the journal entries for the acquisition. c. Determine the value of goodwill.