Merger Transaction Pi Corp. was incorporated on 1 January 2015 and acquired the business of Rho & Sons from 1 April 2014. The purchase price was $1,100,000, paid on 31 December 2014, with $55,000 interest. Below is the profit and loss account for the year ending 31 December 2015:

Account	Amount
Sales	750,000
Cost of goods sold	500,000
Gross profit	250,000
Wages and salaries	100,000
Rent	40,000
Distribution expenses	30,000
Interest paid to vendors	55,000
Depreciation	20,000
Miscellaneous expenses	15,000
Net profit	40,000

Required: a. Allocate profits between pre- and post-incorporation periods. b. Record the journal entries for the purchase. c. Determine the value of goodwill.