Phoenix Corporation acquired the business Sun Systems for $315,000 cash and assumed all liabilities at the date of purchase. Suns books showed tangible assets of $330,000, liabilities of $18,000, and stockholders equity of $312,000. An appraiser assessed the fair market value of the tangible assets at $305,000 and liabilities at $18,000 at the date of acquisition. Phoenix Corporations financial condition just prior to the acquisition is shown in the following statements model.

Required

1 Compute the amount of goodwill acquired.

2 Record the acquisition in general journal format.