Please explain how to solve the problem, don't just give the answer with no explanation.

Problem 7-3A Calculate and record goodwill (LO7-2) Fresh Cut Corporation purchased all the outstanding common stock of Premium Meats for $10,000,000 in cash. The book values and fair values of Premium Meats' assets and liabilities were: Accounts Receivable Equipment Patents Notes Payable Net assets Book Value S 800,000 7,500,000 100,000 (700,000) $7,700,000 Fair Value $ 600,000 8,900,000 700,000 (700,000) $9,500,000 Required: 1. Calculate the amount Fresh Cut should report for goodwill. (Enter your answer in millions rounded to 2 decimal places (i.e., $5,500,000 should be entered as 5.50).) Goodwill million 2. Record Fresh Cut's acquisition of Premium Meats. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in millions rounded to 2 decimal places (i.e., 5,550,000 should be entered as 5.55).) View transaction list Journal entry worksheet Record the acquisition of Premium Meats. Note: Enter debits before credits. Transaction General Journal Debit Credit 1