Server Solutions Paid $200,000 to Acquire Tabletz Inc

question 69

Multiple Choice

Server Solutions paid $200,000 to acquire Tabletz Inc., an electronic gadget-advertising website. At the time of the acquisition, Tabletz's balance sheet reported total assets of $200,000 and liabilities of $100,000. The fair market value of Tabletz's assets was $200,000. The fair market value of its liabilities was $100,000. How much goodwill did Server Solutions purchase as part of the acquisition of Tabletz?

• A)$200,000
• B)$50,000
• C)$100,000
• D)$150,000

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Definitions:

Direction

Guidance or instructions on how to perform a task or reach a destination.

Intrinsic Motivation

The drive to engage in an activity for its own sake and personal rewards, rather than for some separable consequence or reward.

Extrinsic Motivation

Motivation driven by external rewards such as money, fame, grades, or praise, rather than internal satisfaction.

Relatedness Needs

Psychological needs that reflect the desire to feel connected to others, leading to feelings of belonging and acceptance.