Fresh Cut Corporation purchased all the outstanding common stock of Premium Meats for $10,000,000 in cash. The book values and fair values of Premium Meats' assets and liabilities were:

	Book value	Fair value
Accounts Receivable	1,000,000	850,000
Equipment	7,750,000	9,150,000
Patent	150,000	950,000
Notes Payable	(1,200,000)	(1,200,000)
	7,750,000	9,750,000

1. Calculate the amount Fresh Cut should report for goodwill.

2. Record Fresh Cut's acquisition of Premium Meats