On May 31, 2020, Armstrong Company paid $3,200,000 to acquire all of the common stock of Hall Corporation, which became a division of Armstrong. Hall reported the following balance sheet at the time of the acquisition: ABC, Inc. determined the book value of the assets approximated fair value except for the patent which has a fair value of $700,000.

1. Compute the amount of goodwill recognized, if any, on May 31, 2020.

2. Prepare the May 31^st journal entry to record the purchase of Hall Corporation.

On May 31, 2020, Armstrong Company paid $3,200,000 to acquire all of the common stock of Hall Corporation, which became a division of Armstrong. Hall reported the following balance sheet at the time of the acquisition: Accounts payable Notes payable 200,000 500,000 Accounts receivable Inventory PPE, net Patent Total Assets 300,000 600,000 1,700,000 100,000 2,700,000 Stockholders' equity 2,000,000 Total Liab. and SE 2,700,000 ABC, Inc. determined the book value of the assets approximated fair value except for the patent which has a fair value of $700,000. a) Compute the amount of goodwill recognized, if any, on May 31, 2020. b) Prepare the May 31st journal entry to record the purchase of Hall Corporation. Date Account Debit Credit