Routing Solutions paid $233,000 to acquire Tabletz Company, an electronic gadget-advertising website. At the time of the acquisition, Tabletz's balance sheet reported total assets of $233,000 and liabilities of $116,500. The fair market value of Tabletz's assets was $233,000. The fair market value of its liabilities was $116,500. How much goodwill did Routing Solutions purchase as part of the acquisition of Tabletz?
A) $233,000
B) $58,250
C) $116,500
D) $174,750
C) $116,500
Explanation:
Purchase price to acquire Tabletz $233,000
Market value of Tabletz's assets $233,000
Less: Market value of Tabletz's liabilities 116,500
Less: Market value of Tabletz's net assets 116,500
Goodwill $116,500
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