Acquisition and consolidating financial statements:

Shack Company bought 100% of Hut Company for $1,000,000 cash. The market value of Huts current assets was $200,000 on that date, the market value of Huts PPE was $400,000 on that date, and the market value of Hut's liabilities was $100,000 on that date. Below is Shack Companys balance sheet as of the acquisition date (before consolidation). The questions below apply only to Shack's consolidated balance sheet

	Shack Co. Pre-consolidated Balance Sheet (i.e. before purchase of Hut)
Current Assets	$2,000,000
PPE, Net	800,000
Total Assets	2,800,000
Liabilities	1,300,000
Common Sock	900,000
Retained Earnings	600,000
Total Liabilities and Shareholders' Equity	$2,800,000

1. You may assume that goodwill is the only intangible asset established as a consequence of the acquisition. Using the data given above, determine the amount of goodwill associated with this purchase on Shack's consolidated balance sheet.

2. What amount will be shown on Shack's consolidated balance sheet for total assets immediately after the acquisition (hint: remember to reduce the cash paid for the acquisition)?