Pall Corporation paid $4,500,000 for Smith Corporations voting common stock on January 2, 2009, and Smith was liquidated. The purchase price consisted of 100,000 of Pall common stock with a market value of $2,000,000 and $2,500,000 in cash. Also, Pall paid $20,000 for registering and issuing securities and $50,000 for other costs of the acquisition. The balance sheets (in thousands) for the companies immediately before the combination were as follows:

	Pall	Smith	Smith
	BV	BV	FV
Cash	$3,000	$240	$240
Accounts Receivable	$1,300	$500	$400
Notes Receivable	$1,500	$300	$300
Inventories	$2,500	$420	$750
Other Current Assets	$700	$180	$800
Land	$2,000	$100	$450
Buildings	$9,000	$600	$1,200
Equipment	$10,000	$800	$800
Total	$30,000	$3,140	$4,940
Accouts Payable	$1,000	$300	$200
Mortgage Payable	$5,000	$700	$900
Capital Stock, $10 par	$10,000	$1,000
APIC	$8,000	$740
Retained Earnings	$6,000	$400
Total	$30,000	$3,140

1. Calculate the goodwill (or bargain purchase gain) for the transactions. Prepare all journal entries to record the acquisition, and a post-acquisition balance sheets.