Elissar Company acquired the assets (except cash) and assumed the liabilities of Star Company on January 1 2016 paying 2800000$ cash. Immediately prior to the acquisition, Star Company balance sheet as follows: Book value Fair value Accounts receivable (net) 260,000$ 240,000$ Inventory 270,000 340,000 Land 980,000 1,520,000 Buildings (net) 1,040,000 1,400,000 Total 2,550,000$ 3,500,000$ Account payable 290,000$ 280,000$ Note payable 610,000 620,000 Common stock 5$ par 430,000 Other contributed capital 640,000 Retained earnings 580,000 Total 2,550,000$ Elissar company agreed to pay Star companys former stockholder 500,000$ cash in 2018 if post-combination earnings of the combined company reached 1,000,000$ during 2017 and 2018. 1) Calculate goodwill and prepare the journal entry necessary for Elissar Company to record the acquisition on January 1 2018. It is expected that the earnings target is likely to be met. 2) Prepare the journal entry necessary for Elissar Company in 2018 assuming the earnings contingency was not met.