Tusk Company Acquired All of the Assets of Tinsel Company

question 20

Essay

Tusk Company acquired all of the assets of Tinsel Company for $1,000,000. With the approval of Tinsel's stockholders and creditors, Tinsel transferred all of its assets and liabilities to Tusk Company and distributed the cash to Tinsel's stockholders. On the acquisition date, Tinsel's stockholders' equity was $500,000. Tusk Company determined that Tinsel's liabilities of $500,000 are correctly valued, but its identifiable assets are worth $300,000 more than their book value of $1,000,000.
Determine the amount of goodwill to be recognized by Tusk Company as a result of its acquisition of Tinsel Company.

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Definitions:

Sodomy

Sexual activity involving anal or oral intercourse.

Self-Stimulation

Acts individuals perform on themselves to provide pleasure or satisfaction.

Marital Satisfaction

denotes the degree of contentment and fulfillment individuals feel in their marital relationships.

Masturbation

The sexual stimulation of one's own genitals for sexual arousal or pleasure, typically to the point of orgasm.