When one media company buys another, goodwill is often the most costly asset acquired. TXL Publishing paid

Question:

When one media company buys another, is often the most costly asset acquired. TXL Publishing paid $650,000 to acquire the Thrifty Nickel , a weekly advertising paper. At the time of the acquisition, the Thrifty Nickel’s reported total assets of $800,000 and liabilities of $400,000. The fair market value of the Thrifty Nickel’s assets was $900,000. The fair market value of liabilities was $400,000. How much did TXL Publishing purchase as part of the acquisition of the Thrifty Nickel? Journalize TXL Publishing’s acquisition of the Thrifty Nickel

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...