Please provide a response to the following problem:

ABC Company purchased XYZ Company for $3,700,000 in cash. The market value of XYZ Company's assets and liabilities on the acquisition date were $4,000,000 and $1,500,000, respectively.

Compute the cost of the goodwill purchased by ABC Company and journalize the entry to record the acquisition. How will the company account for this goodwill in future accounting periods?