Arizona Corporation acquired the business Data Systems for $320,000 cash and assumed all liabilities at the date of purchase. Datas books showed tangible assets of $340,000, liabilities of $19,000, and stockholders equity of $321,000. An appraiser assessed the fair market value of the tangible assets at $310,000 at the date of acquisition. Arizona Corp.s financial condition just prior to the acquisition is shown in Required B. Required Compute the amount of goodwill acquired. Record the acquisition in a financial statements model.

\begin{tabular}{|l|r|} \hline \multicolumn{2}{|c|}{ Acquisition Price } \\ \hline Cash paid & \\ \hline Liabilities assumed & \\ \hline Total & \\ \hline FMV of assets & \\ \hline Goodwill & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{16}{|c|}{ ARIZONA CORPORATION } \\ \hline \multicolumn{16}{|c|}{ Horizontal Statements Model } \\ \hline \multirow{3}{*}{ Event } & \multicolumn{9}{|c|}{ Balance Sheet } & \multicolumn{5}{|c|}{ Income Statement } & \multirow{3}{*}{\begin{tabular}{c} Statement of Cash \\ Flows \end{tabular}} \\ \hline & \multicolumn{5}{|c|}{ Assets } & \multirow{2}{*}{=} & \multirow{2}{*}{ Liabilities } & \multirow{2}{*}{+} & \multirow{2}{*}{\begin{tabular}{c} Stockholders' \\ Equity \end{tabular}} & \multirow{2}{*}{ Revenue } & \multirow{2}{*}{-1} & \multirow{2}{*}{ Expenses } & \multirow{2}{*}{=} & \multirow{2}{*}{\begin{tabular}{c} Net \\ Income \end{tabular}} & \\ \hline & Cash & + & Assets & + & Goodwill & & & & & & & & & & \\ \hline Beginning balances & 540,000 & + & & + & & = & & + & 540,000 & & - & & = & & \\ \hline Acquisition & & + & & + & & =? & & +? & & & ? & & = & & \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline \multicolumn{2}{|c|}{ Acquisition Price } \\ \hline Cash paid & \\ \hline Liabilities assumed & \\ \hline Total & \\ \hline FMV of assets & \\ \hline Goodwill & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{16}{|c|}{ ARIZONA CORPORATION } \\ \hline \multicolumn{16}{|c|}{ Horizontal Statements Model } \\ \hline \multirow{3}{*}{ Event } & \multicolumn{9}{|c|}{ Balance Sheet } & \multicolumn{5}{|c|}{ Income Statement } & \multirow{3}{*}{\begin{tabular}{c} Statement of Cash \\ Flows \end{tabular}} \\ \hline & \multicolumn{5}{|c|}{ Assets } & \multirow{2}{*}{=} & \multirow{2}{*}{ Liabilities } & \multirow{2}{*}{+} & \multirow{2}{*}{\begin{tabular}{c} Stockholders' \\ Equity \end{tabular}} & \multirow{2}{*}{ Revenue } & \multirow{2}{*}{-1} & \multirow{2}{*}{ Expenses } & \multirow{2}{*}{=} & \multirow{2}{*}{\begin{tabular}{c} Net \\ Income \end{tabular}} & \\ \hline & Cash & + & Assets & + & Goodwill & & & & & & & & & & \\ \hline Beginning balances & 540,000 & + & & + & & = & & + & 540,000 & & - & & = & & \\ \hline Acquisition & & + & & + & & =? & & +? & & & ? & & = & & \\ \hline \end{tabular}