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Routing Solutions paid $233,000 to acquire Tabletz Company, an electronic gadget-advertising website. At the time of the acquisition, Tabletz's balance sheet reported total assets of $233,000 and liabilities of $116,500. The fair market value of Tabletz's assets was $233,000. The fair market value of its liabilities was $116,500. How much goodwill did Routing Solutions purchase as part of the acquisition of Tabletz

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ayokenny2001

Answer:

See below

Explanation:

The goodwill routing solutions purchased as part of the acquisition of Tabletz is computed as;

= liabilities - (Fair market value - Net value)

Liabilities = $116,500

Fair market value = $233,000

Net value =

= $116,500 - [($233,000 - $116,500) - $233,000 - $116,500)]

= $116,500

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