In its unadjusted trial balance, Boxer Limited had assets of $800,000 and liabilities of $200,000. An appraisal of the assets indicated that their fair value was $100,000 more than the carrying amount shown on the trial balance. The liabilities' fair value was equal to their carrying value. Mandrake Inc. made an offer to purchase Boxer Limited. When such offers are made, the purchaser, Mandrake Inc., receives all of the assets and also assumes the liabilities of Boxer. The value of the assets of $900,000 less the value of the liabilities of $200,000 is $700,000 yet Mandrake offered $840,000. Why was the offer so high? What is the difference between the $840,000 and the $700,000 called?