Fresh Cut Corporation purchased all the outstanding common stock of Premium Meats for $$10,900,000$ in cash. The book values and fair values of Premium Meats' assets and liabilities were as follows:

Book Value Fair Value

Accounts Receivable $ $1,250,000$ $ $1,050,000$

Equipment $7,950,0009,350,000$

Patents $190,0001,150,000$

Notes Payable $(1,600,000)(1,600,000)$

Net assets $ $7,790,000$ $ $9,950,000$

Required:

$$Record Fresh Cut's acquisition of Premium Meats.