Problem 7-3B Calculate and record goodwill (L07-2) Northern Equipment Corporation purchased all the outstanding common stock of Ploneer Equipment Rental for $5,540,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Accounts Receivable Buildings Equipment Accounts Payable Net assets Book Value Fair Value $ 690,000 $ 590,000 4,040,000 4,740,000 110,000 200,000 (810,000) (810,000) $4,030,000 $4,720,000 Required: 1. Calculate the amount Northern Equipment should report for goodwill. Answer is complete and correct. Goodwill $ 820,000 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.) Answer is not complete. No General Journal Credit Transaction 1 1 Debit 590,000 4,740,000 820,000 Accounts Receivable Buildings Goodwill Equipment Cash Oololo 710,000 5,540,000