Mitre Company acquired Midwest Transportation Co. for $1,400,000.00 The fair market vaules of the assests acquired were as follows. No liabilities were assumed.

Equipment	$510,000.00
Land	$150,000.00
Building	$520,000.00
Franchise (10 year life)	$40,000.00

Required:

a. Calculate the amount of goodwill acquired.

b. Prepare the journal entry to record the amortization of the franchise fee at the end of year 1.