Calculate the amount fresh cut paid for goodwill

Reference no: EM131521304

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.

Reference no: EM131521304

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