Be Sands purchased the business Regional Supply Co. for $285,000 cash and assumed all liabilities at the date of purchase. Regional's books showed assets of $280,000, liabilities of $40,000, and equity of $240,000. An appraiser assessed the fair market value of the tangible assets at $270,000 at the date of purchase. Sands's financial condition just prior to the purchase is shown in the following statements model.

Required
a. Compute the amount of goodwill purchased.
b. Record the purchase in a financial statements model like the precedingone.

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Assets -Liab Equity Rev.ExNet Inc. Cash Flow Cash Assets+Goodwill 325,000 NA NA NA 325,000 NANA NA NA