Arizona Corporation acquired the business Data Systems for $305,000 cash and assumed all liabilities at the date of purchase. Datas books showed tangible assets of $310,000, liabilities of $16,000, and stockholders equity of $294,000. An appraiser assessed the fair market value of the tangible assets at $295,000 and liabilities at $16,000 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
510,000	+	NA	+	NA	=	NA	+	510,000	NA		NA	=	NA	NA

Required

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

4. Record the acquisition in general journal format.