Merger Financials Alpha Corp. was incorporated on 1 April 2006 and took over the business of Beta & Sons from 1 January 2006. The purchase price was $700,000, paid on 30 June 2006, with $35,000 interest. Below is the profit and loss account for the year ending 31 December 2006:

Account	Amount
Sales	800,000
Cost of goods sold	450,000
Gross profit	350,000
Wages and salaries	100,000
Rent	30,000
Distribution expenses	25,000
Interest paid to vendors	35,000
Depreciation	15,000
Miscellaneous expenses	10,000
Net profit	65,000

Required: a. Show the allocation of profits between pre- and post-incorporation periods. b. Prepare the journal entries for the acquisition. c. Calculate the goodwill arising from the acquisition.