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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
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 Required a. Compute the amount of goodwill acquired. b. Record the acquisition in a financial statements model. Arizona Corp.'s financial condition just prior to the acquisition is shown in the financial statements model. Complete this question by entering your answers in the tabs below. Required A Required B Compute the amount of goodwill acquired. Cash paid Acquisition Price Liabilities assumed Total FMV of assets Goodwill www < Prev 3 of 3 www Next 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. Required a. Compute the amount of goodwill acquired. b. Record the acquisition in a financial statements model. Arizona Corp's financial condition just prior to the acquisition is shown in the financial statements model. Complete this question by entering your answers in the tabs below. Required A Required B Record the acquisition in a financial statements model. Arizona Corp.'s financial condition just prior to the acquisition is shown in the financial stateme Flows column, use the initials OA to designate operating activity, IA for investing activity, and FA for financing activity. Enter any decreases to account sign. Not all cells require input. Round final answers to the nearest whole dollar amount.) ARIZONA CORP Horizontal Statements Model Balance Sheet Income Statement
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