Fresh Cut Corporation purchased all the outstanding common stock of Premium Meats for $$11,600,000$ in cash. The book values and fair values of Premium Meats' assets and liabilities were as follows:Record Fresh Cut's acquisition of Premium Meats.

Note: If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field. Enter y

millions rounded to $2$ decimal places $($i$.$e$.,5,550,000$ should be entered as $5\mathrm{.}55).$

Journal entry worksheet

Record the acquisition of Premium Meats.

Note: Enter debits before credits.

Book Value Fair Value

Accounts Receivable $ $1,600,000$ $ $1,400,000$

Equipment $8,300,0009,700,000$

Patents $260,0001,500,000$

Notes Payable $(2,300,000)(2,300,000)$

Net assets $ $7,860,000$ $ $10,300,000$

Required:

Calculate the amount Fresh Cut should report for goodwill.

Record Fresh Cut's acquisition of Premium Meats.