Arizona Corporation acquired the business Data Systems for $310,000 cash and assumed all liabilities at the date of purchase. Datas books showed tangible assets of $320,000, liabilities of $17,000, and stockholders equity of $303,000. An appraiser assessed the fair market value of the tangible assets at $300,000 and liabilities at $17,000 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
520,000	+	NA	+	NA	=	NA	+	520,000	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.

3.Record the acquisition in general journal format.