Problem 7-3B Calculate and record goodwill (L07-2) Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,490,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Book Value Fair Value Accounts Receivable $ 640,000 $ 540,000 Buildings 3,990,000 4,690,000 Equipment 120,000 210,000 Accounts Payable (860,000) (860,000) Net assets $3,890,000 $4,580,000 Required: 1. Calculate the amount Northern Equipment should report for goodwill. Goodwill 910,000 2. Record Northern Equipment's acquisition of Pioneer Equipment Rental. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 2. Record Northern Equipment's acquisition of Pioneer Equipment Rental. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet