Arizona Corp. acquired the business Data Systems for $355,000 cash and assumed all liabilities at the date of purchase.
Posted: Sun Apr 17, 2022 7:05 pm
Arizona Corp. acquired the business Data Systems for $355,000
cash and assumed all liabilities at the date of purchase. Data’s
books showed tangible assets of $410,000, liabilities of $26,000,
and stockholders’ equity of $384,000. An appraiser assessed the
fair market value of the tangible assets at $345,000 at the date of
acquisition. Arizona Corp.’s financial condition just prior to the
acquisition is shown in the following statements model:
Required: a. Compute the amount of goodwill acquired. b. Record
the acquisition in a financial statements model like the preceding
one. d. Record the acquisition in general journal format.
cash and assumed all liabilities at the date of purchase. Data’s
books showed tangible assets of $410,000, liabilities of $26,000,
and stockholders’ equity of $384,000. An appraiser assessed the
fair market value of the tangible assets at $345,000 at the date of
acquisition. Arizona Corp.’s financial condition just prior to the
acquisition is shown in the following statements model:
Required: a. Compute the amount of goodwill acquired. b. Record
the acquisition in a financial statements model like the preceding
one. d. Record the acquisition in general journal format.