Merger Accounting Epsilon Ltd was incorporated on 1 July 2020 and acquired the business of Theta Partners from 1 January 2020. The purchase price was $1,200,000, paid on 30 June 2020, with $60,000 interest. Below is the profit and loss account for the year ending 31 December 2020:

Account	Amount
Sales	1,000,000
Cost of goods sold	600,000
Gross profit	400,000
Wages and salaries	150,000
Rent	50,000
Distribution expenses	40,000
Interest paid to vendors	60,000
Depreciation	30,000
Miscellaneous expenses	20,000
Net profit	50,000

Required: a. Split the profit between pre- and post-incorporation periods. b. Record journal entries for the purchase. c. Calculate the goodwill on acquisition.