Server Solutions paid $209,000 to acquire Tabletz, Inc, an electronic gadget-advertising website
At the time of the acquisition, Tabletz's balance sheet reported total assets of $209,000 and liabilities of $104,500. The fair market value of Tabletz's assets was $209,000. The fair market value of its liabilities was $104,500. How much goodwill did Server Solutions purchase as part of the acquisition of Tabletz?
A) $209,000
B) $52,250
C) $104,500
D) $156,750
C .Purchase price to acquire Tabletz $209,000
Market value of Tabletz's assets $209,000
Less: Market value of Tabletz's liabilities 104,500
Less: Market value of Tabletz's net assets 104,500
Goodwill $104,500
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