Fresh Cut Corporation purchased all the outstanding common stock of Premium Meats for $10,900,000 in cash. The book values and fair values of Premium Meats' assets and liabilities were as follows: Accounts Receivable Equipment Patents Notes Payable Net assets Book Value $ 1,250,000 7,950,000 190,000 (1,600,000) $ 7,790,000 Fair Value $ 1,050,000 9,350,000 1,150,000 (1,600,000) $ 9,950,000 Required: 1. Calculate the amount Fresh Cut should report for goodwill. 2. Record Fresh Cut's acquisition of Premium Meats.

Fresh Cut Corporation purchased all the outstanding common stock of Premium Meats for $10,900,000 in cash. The book values and fair values of Premium Meats' assets and tlabilities were as follows: Required: 1. Calculate the amount Fresh Cut should report for goodwill. 2. Record Fresh Cut's acquisition of Premium Meats