Arizona Corp. acquired the business Data Systems for $305,000 cash and assumed all liabilities at the date of purchase. Data’s 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 at the date of acquisition.
Required:
a. Compute the amount of goodwill acquired.
b. Record the acquisition in a financial statements model.
Answers: 1
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Arizona Corp. acquired the business Data Systems for $305,000 cash and assumed all liabilities at th...
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