Janzen Corporation acquired all of the outstanding common stock of Steinbeck Corporation for $11,240,000 in cash. The book values and fair values of Steinbecks assets and liabilities were the following:

Janzen Corporation acquired all of the outstanding common stock of Steinbeck Corporation for $11,240,000 in cash. The book values and fair values of Steinbecks assets and liabilities were the following:

Book ValueFair ValueAccounts receivable$ 1,360,000$ 1,160,000Land1,260,0001,560,000Equipment6,860,0007,960,000Patent260,0001,260,000Accounts payable1,760,0001,760,000

Required:

1. Calculate the amount paid for goodwill.
2. Record the acquisition of Steinbeck Corporation.

Book ValueFair ValueAccounts receivable$ 1,360,000$ 1,160,000Land1,260,0001,560,000Equipment6,860,0007,960,000Patent260,0001,260,000Accounts payable1,760,0001,760,000

Required:

1. Calculate the amount paid for goodwill.

2. Record the acquisition of Steinbeck Corporation.

Calculate the amount paid for goodwill. To record the acquisition of Steinbeck Corporation. Note: Enter debits before credits