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
You might also like to view...
Cooking food in a grocery store and giving small pieces of the food to consumers who pass by is which form of sampling?
A) in-store distribution B) direct C) response D) cross-ruffing
The recognition point for revenues, expenses, gains and losses is the same for tax and financial reporting purposes
Indicate whether the statement is true or false
Which of the following companies has a market-oriented business definition?
A) An electronics company, whose business definition is: "We produce microchips." B) A hotel, whose business definition is: "We rent rooms." C) An apparel company, whose business definition is: "We make and sell women's clothing." D) A cosmetic company, whose business definition is: "We sell hope and self-esteem." E) A pizzeria, whose business definition is: "We sell the world's most delicious thin-crust pizzas."
The use of email can be distracting to employees when they use it excessively or for personal reasons.
Answer the following statement true (T) or false (F)