When one media company buys another, goodwill is often the most costly asset acquired. World Media paid $ 700,000 to acquire the Dandy Dime, a weekly advertising paper. At the time of the acquisition, the Dandy Dime’s balance sheet reported total assets of $ 1,200,000 and liabilities of $ 600,000. The fair market value of the Dandy Dime’s assets was $ 800,000. How much goodwill did World Media purchase as part of the acquisition of the Dandy Dime? Journalize World Media’s acquisition of the Dandy Dime.
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