Fresh Cut Corporation purchased all the outstanding common stock of Premium Meats for $$12,000,000$ in cash. The book values and fair values of Premium Meats$$ assets and liabilities were as follows:

Book Value Fair Value

Accounts Receivable $ $1,800,000$ $ $1,600,000$

Equipment $8,500,0009,900,000$

Patents $300,0001,700,000$

Notes Payable $(2,700,000)(2,700,000)$

Net assets $ $7,900,000$ $ $10,500,000$

Required:

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

$2.$ Record Fresh Cut's acquisition of Premium Meats.