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 the following statements model:

Required
a. Compute the amount of goodwill acquired.
b. Record the acquisition in a financial statements model like the preceding one.
c. When will the goodwill be written off under the impairment rules?
d. Record the acquisition in general journal format.

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Assets Liab. + Equity Rev. - Exp. = Net Inc.|| Cash Flow Cash Tang. Assets Goodwill 450,000 + NA NA - NA + 450,000 NA - NA - NA NA