Fresh Cut Corporation purchased all the outstanding common stock of Premium Meats for $$10,800,000$ in cash. The book values and fair values of Premium Meats' assets and liabilities were:

Book Value

Fair Value

Accounts Receivable

$

$1,200,000$

$

$1,000,000$

Equipment

$7,900,000$

$9,300,000$

Patents

$180,000$

$1,100,000$

Notes Payable

$(1,500,000$

$)$

$(1,500,000$

$)$

Net assets

$

$7,780,000$

$

$9,900,000$

Required:

Calculate the amount Fresh Cut should report for goodwill.

Record Fresh Cut's acquisition of Premium Meats.