Question

Routing Solutions paid $ 206 comma 000 to acquire​ Tabletz, Inc., an electronic gadgetminusadvertising website. At the time of the​ acquisition, Tabletz's balance sheet reported total assets of $ 206 comma 000 and liabilities of $ 103 comma 000. The fair market value of​ Tabletz's assets was $ 206 comma 000. The fair market value of its liabilities was $ 103 comma 000. How much goodwill did Routing Solutions purchase as part of the acquisition of​ Tabletz?

Answer 1

Goodwill is $103,000

Step-by-step explanation:

The computation of the goodwill amount is shown below:

= Fair market value - net value

where,

Fair market value is $206,000

And, the net value equals to

= Total assets - liabilities

= $206,000 0 $103,000

= $103,000

Now put these values to the above formula

So, the value would equal to

= $206,000 - $103,000

= $103,000