Fresh Cut Corporation purchased all the outstanding common stock of Premium Meats for $ in cash. The book values and fair values of Premium Meats' assets and liabilities were as follows:
Book Value Fair Value
Accounts Receivable $ $
Equipment
Patents
Notes Payable
Net assets $ $
Required:
Calculate the amount Fresh Cut should report for goodwill.
Record Fresh Cut's acquisition of Premium Meats. Record the acquisition of Premium Meats.
