When a service firm is acquired by another, there is often a significant premium paid over the acquired firm's book value.  Frequently, a substantial portion of this premium is the result of the value of the     human assets acquired.  A methodology is presented by which the value of the human assets may be determined separately and distinctly from goodwill.  The application of human resource accounting is applied to the problems of measuring the value of human assets, acquired in a corporate acquisition, for corporate income tax purposes.  The company for which the study is performed used the actual valuations in reporting its net income for tax purposes.  The calculations are based on easily verifiable financial data and production data provided by the management of the acquired firm.  The study made management more aware of the value that could be lost when personnel left the firm following the acquisition. Also, an amortization schedule is set forth so the asset can be amortized for tax purposes.