Question: Fresh Cut Corporation purchased all the outstanding common stock of Premium Meats for $11,000,000 in cash. The book value of Premium Meats' net assets (assets minus liabilities) was $7,800,000. The book values and fair values of Premium Meats' assets and liabilities were:
Required: 1. Calculate the amount Fresh Cut paid for goodwill.
2. Record Fresh Cut's acquisition of Premium Meats.