Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,600,000 in cash. The book values and fair values of Pioneers assets and liabilities were as follows:

	Book Value	Fair Value
Accounts Receivable	$ 750,000	$ 650,000
Buildings	4,100,000	4,800,000
Equipment	110,000	200,000
Accounts Payable	(750,000)	(750,000)
Net assets	$ 4,210,000	$ 4,900,000

Required:

1. Calculate the amount Northern Equipment should report for goodwill.

2. Record Northern Equipments acquisition of Pioneer Equipment Rental