Record the acquisition in a financial statements model

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Question - Arizona Corp. acquired the business Data Systems for $320,000 cash and assumed all liabilities at the date of purchase. Data's books showed tangible assets of $260,000, liabilities of $40,000, and stockholders' equity of $220,000. An appraiser assessed the fair market value of the tangible assets at $250,000 at the date of acquisition. Arizona Corp.'s financial condition just prior to the acquisition is shown in Required B.

Required -

a. Compute the amount of goodwill acquired.

b. Record the acquisition in a financial statements model.

Reference no: EM133110296

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