I\'m not sure if I am correct, an explanation would be awesome either way! Serve

Question

I'm not sure if I am correct, an explanation would be awesome either way!

Server Solutions paid $207,000 to acquire Tabletz, Inc., an electronic gadget - advertising website. At the time of the acquisition, Tabletz's balance sheet reported total assets of $207,000 and liabilities of $103,500. The fair market value of Tabletz's assets was $207,000. The fair market value of its liabilities was $103,500. How much goodwill did Server Solutions purchase as part of the acquisition of Tabletz? ?A. $103,500 B. $155,250 OC. $207,000 O D. $51,750

Explanation / Answer

Calculate goodwill :

So answer is a) $103500

Total assets 207000 Less: Total liabilities -103500 Net Assets 103500 Amount paid -207000 Goodwill 103500

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