Question: Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,500,000 in cash. The book value of Pioneer's net assets (assets minus liabilities) was $3,900,000. The book values and fair values of Pioneer's assets and liabilities were:
![402_Recievables.png](https://secure.tutorsglobe.com/CMSImages/402_Recievables.png)
Required: 1. Calculate the amount paid for goodwill.
2. Record Northern Equipment's acquisition of Pioneer Equipment Rental.