Tusk Company Acquired All of the Assets of Tinsel Company

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.