Assume that on January 1, 2013, an investor company acquired 100% of the outstanding voting com-

mon stock of an investee company in exchange for $150,000. The transaction is a taxable asset acquisi-

tion under the Internal Revenue Code. The following financial statement information is for the investor

company and the investee company on January 1, 2013, prepared immediately before this transaction.

Book Values

InvestorInvestee

Current assets.................................................$150,000$ 80,000

Noncurrent assets..............................................225,000

100,000

Total assets....................................................$375,000$180,000

Liabilities......................................................$150,000$ 80,000

Common stock ($1 par)..........................................20,00010,000

Additional paid-in capital.........................................130,00080,000

Retained earnings..............................................75,000

10,000

Total liabilities & equity...........................................$375,000$180,000

Assume that the fair values of the investees net assets approximated the recorded book values of the

investees net assets, except the fair value of the investees identifiable noncurrent assets is $20,000

higher than book value. In addition, the investees pre-transaction tax bases in its individual net assets

approximate their reportedbook values. This difference relates entirely to tax-deductible items.Assume

the marginal tax rate is 40% for the investor and investee.What amount of goodwill should be reported

in the investors consolidated balance sheet prepared immediately after this business combination?