Server Solutions Paid $211,000 to Acquire Tabletz,Inc

question 44

Multiple Choice

Server Solutions paid $211,000 to acquire Tabletz,Inc. ,an electronic gadget-advertising website.At the time of the acquisition,Tabletz's balance sheet reported total assets of $211,000 and liabilities of $105,500.The fair market value of Tabletz's assets was $211,000.The fair market value of its liabilities was $105,500.How much goodwill did Server Solutions purchase as part of the acquisition of Tabletz?

• A)$211,000
• B)$52,750
• C)$105,500
• D)$158,250

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Definitions:

Disposable Income

Income remaining after deduction of taxes and social security charges, available to be spent or saved as one wishes.

Consumption Spending

The total money spent by households in an economy on goods and services.

Marginal Propensity

The fraction of an additional unit of income that is spent on consumption rather than being saved.