Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,460,000 in cash. The book values and fair values of Pioneers assets and liabilities were as follows:

	Book Value	Fair Value
Accounts Receivable	$ 610,000	$ 510,000
Buildings	3,960,000	4,660,000
Equipment	120,000	210,000
Accounts Payable	(890,000)	(890,000)
Net assets	$ 3,800,000	$ 4,490,000

Required:

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

2. Record Northern Equipments acquisition of Pioneer Equipment Rental.