Takeover Accounting Sigma Corp. was incorporated on 1 July 2013 and acquired the business of Tau & Co. from 1 January 2013. The purchase price agreed was $600,000, payable on 30 September 2013, including $30,000 interest. Below is the profit and loss account for the year ending 31 December 2013:

Account	Amount
Sales	500,000
Cost of goods sold	300,000
Gross profit	200,000
Wages and salaries	70,000
Rent	20,000
Distribution expenses	15,000
Interest paid to vendors	30,000
Depreciation	10,000
Miscellaneous expenses	10,000
Net profit	45,000

Required: a. Allocate profits between pre- and post-incorporation periods. b. Record the journal entries for the purchase. c. Determine the value of goodwill.