Fresh Cut Corporation purchased all the outstanding common stock of Premium Meats for $$11,900,000$ in cash. The book values and fair values of Premium Meats' assets and liabilities were as follows:

Book Value Fair Value

Accounts Receivable $ $1,750,000$ $ $1,550,000$

Equipment $8,450,0009,850,000$

Patents $290,0001,650,000$

Notes Payable $(2,600,000)(2,600,000)$

Net assets $ $7,890,000$ $ $10,450,000$

Required:

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

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