Company Merger Financials Chi Corp. was incorporated on 1 January 2009 and acquired the business of Psi Ltd from 1 October 2008. The purchase price was $1,000,000, paid on 31 March 2009, including $50,000 interest. Below is the profit and loss account for the year ending 31 December 2009:

Account	Amount
Sales	900,000
Cost of goods sold	500,000
Gross profit	400,000
Wages and salaries	120,000
Rent	30,000
Distribution expenses	25,000
Interest paid to vendors	50,000
Depreciation	20,000
Miscellaneous expenses	15,000
Net profit	140,000

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