1. X Incorporated purchased all of the assets and liabilities of F Company at the close of business on December 31, 2017. X paid cash of $840,000 and borrowed $2,000,000 finance the rest of the transaction. The fair value and book value of F's recorded assets and liabilities as of the date of acquisition are listed below.

Book Value Fair Value

Cash $230,000 $230,000

Inventories 220,000 260,000

Other current assets 630,000 640,000

Land 270,000 320,000

Plant assets-net 4,650,000 4,650,000

Total Assets $6,000,000 $6,100,000

Accounts payable $1,200,000 $1,200,000

Notes payable 2,100,000 2,100,000

Capital stock, $5 par 700,000

Additional paid-in capital 1,400,000

Retained Earnings 600,000

Total Liabilities & Equities $6,000,000

Required:

1. Prepare the preliminary calculations to determine if X paid more than the implied fair value of F if so determine the amounts and goodwill.

2. Prepare X's general journal entry for the acquisition of F.