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:

Interpret

To explain the meaning of information, words, or actions.

Ambiguous

Something that can be understood in more than one way or is unclear because of having multiple interpretations.

Interest-Based Negotiation

Negotiation focused on the underlying interests and needs of the parties, rather than fixed positions.