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:

Qualitative

Pertaining to or concerning the quality or nature of something, often used in research to describe non-numerical data gathered through observation, interviews, and narratives.

Quantitative

Pertaining to or involving the measurement of quantity or amount. In research, it refers to methods that focus on numbers and statistical analysis.

Deduction

A logical process in which a conclusion follows necessarily from the set of premises, moving from general principle to a specific instance.

Empirical Evidence

Information obtained through observation or experimentation that can be used to verify or refute a hypothesis.