Fresh Cut Corporation purchased all the outstanding common stock of Premium Meats for $$10,100,000$ in cash. The book values and fair values of Premium Meats' assets and liabilities were as follows:

Book Value Fair Value

Accounts Receivable $ $850,000$ $ $650,000$

Equipment $7,550,0008,950,000$

Patents $110,000750,000$

Notes Payable $(800,000)(800,000)$

Net assets $ $7,710,000$ $ $9,550,000$

Required:

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

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