Company Merger Nu Ltd was incorporated on 1 July 2017 and acquired the business of Xi & Co. from 1 April 2017. The purchase price agreed was $800,000, payable on 30 September 2017, including $40,000 interest. Below is the profit and loss account for the year ending 31 December 2017:

Account	Amount
Sales	600,000
Cost of goods sold	350,000
Gross profit	250,000
Wages and salaries	90,000
Rent	20,000
Distribution expenses	15,000
Interest paid to vendors	40,000
Depreciation	20,000
Miscellaneous expenses	10,000
Net profit	55,000

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