On Jan 1^st, 2015, Server Solutions Paid $200,000 to Acquire

question 94

Essay

On Jan 1^st, 2015, 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. At the end of 2018, they measured goodwill and found its fair value to be $60,000. Calculate and record the impairment of goodwill.

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Definitions:

Brain Hemisphere

One half of the brain, either the left or the right, each responsible for different functions and cognitive processes.

Visual Field

The total area in which objects can be seen in the peripheral vision while the eye is focused on a central point.

Sex Hormones

Chemical substances produced by the body that regulate sexual development, behavior, and reproduction.

Reproduction

The biological process by which new individual organisms are produced from their parents.