Fresh Cut Corporation purchased all the outstanding common stock of Premium Meats for $10,500,000 in cash. The book values and fair values of Premium Meats' assets and liabilities were:

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

2. Record Fresh Cut's acquisition of Premium Meats. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 2 decimal places (i.e., 5,550,000 should be entered as 5.55).)

Book Value Fair Value Accounts Receivable Equipment Patent Notes Payable $ 1,050,000 $ 850,000 7,750,000 9,150,000 950,000 (1,200,000) (1,200,000) 150,000 Net assets $7,750,000 9,750,000