Arizona Corporation acquired the business Data Systems for $280,000 cash and assumed all liabilities at the date of purchase Datas books showed tangible assets of $260,000, liabilities of $11,000, and stockholders equity of $249,000 An appraiser assessed the fair market value of the tangible assets at $270,000 and liabilities at $11,000 at the date of acquisition Arizona Corporations financial condition just prior to the acquisition is shown in the following statements model Balance Sheet Income Statement Assets Liabilities Stockholders Equity Revenue Expenses Net Income Statement of Cash Flows Cash Tangible Assets Goodwill 460,000 NA NA NA 460,000 NA NA NA NA Required Compute the amount of goodwill acquired Record the acquisition in a financial statements model Arizona Corporations financial condition just prior to the acquisition is shown in the financial statements model Record the acquisition in general journal format Complete this question by entering your answers in the tabs below Compute the amount of goodwill acquired Record the acquisition in a financial statements model Arizona Corporation's financial condition just prior to the acquisition is shov horizontal statements model (In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for in activity, and FA for financing activity Leave blank to indicate that an element is not affected by the event Enter any decreases to account balances and cash outflows with a minus sign ) Complete this question by entering your answers in the tabs below Record the acquisition in general journal format (If no entry is required for a transaction event, select No journal entry required in the first account field )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 15, 2024

Arizona Corporation acquired the business Data Systems for $280,000 cash and assumed all liabilities at the date of purchase. Datas books showed tangible assets of

Arizona Corporation acquired the business Data Systems for $280,000 cash and assumed all liabilities at the date of purchase. Datas books showed tangible assets of $260,000, liabilities of $11,000, and stockholders equity of $249,000. An appraiser assessed the fair market value of the tangible assets at $270,000 and liabilities at $11,000 at the date of acquisition. Arizona Corporations financial condition just prior to the acquisition is shown in the following statements model.

Balance Sheet									Income Statement
Assets					=	Liabilities	+	Stockholders Equity	Revenue	Expenses	=	Net Income	Statement of Cash Flows
Cash	+	Tangible Assets	+	Goodwill	=	Liabilities	+	Stockholders Equity	Revenue	Expenses	=	Net Income	Statement of Cash Flows
460,000	+	NA	+	NA	=	NA	+	460,000	NA	NA	=	NA	NA

Required

Compute the amount of goodwill acquired.
Record the acquisition in a financial statements model. Arizona Corporations financial condition just prior to the acquisition is shown in the financial statements model.
Record the acquisition in general journal format.

Complete this question by entering your answers in the tabs below. Compute the amount of goodwill acquired. Record the acquisition in a financial statements model. Arizona Corporation's financial condition just prior to the acquisition is shov horizontal statements model. (In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for in activity, and FA for financing activity. Leave blank to indicate that an element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.) Complete this question by entering your answers in the tabs below. Record the acquisition in general journal format. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)