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Summer 20 Company acquired 100% of the voting common stock of Towel, Corp on January 1, 2020. Book and fair values as of January 1,

Summer 20 Company acquired 100% of the voting common stock of Towel, Corp on January 1, 2020. Book and fair values as of January 1, 2020 are below.

Assume that Summer 20 issued 11,000 shares of common stock with a $5 par value and a $50 fair value to obtain all of Towel's outstanding stock. In this acquisition transaction, how much consolidated goodwill should be recognized?

Summer 20 Book Value Towel Corp Book Value Towel Corp Fair Value
Retained Earnings 1/1/20 $280,000 $260,000
Cash and Receivables $170,000 $75,000 $70,000
Inventory $260,000 $155,000 $180,000
Land $280,000 $245,000 $255,000
Buildings (net) $480,000 $240,000 $270,000
Equipment (net) $120,000 $90,000 $90,000
Liabilities $650,000 $425,000 $420,000
Common Stock $360,000 $75,000
Additional Paid in Capital $20,000 $45,000

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