Exercise $8-20$A $($Algo$)$ Computing and recording goodwill LO $8-10$

Arizona Corporation acquired the business Data Systems for $$340,000$ cash and assumed all liabilities at the date of purchase. Data's

books showed tangible assets of $$380,000,$ liabilities of $$23,000,$ and stockholders' equity of $$357,000.$ An appraiser assessed the fair

market value of the tangible assets at $$330,000$ at the date of acquisition. Arizona Corporation's financial condition just prior to the

acquisition is shown in Required B$.$

Required

a$.$ Compute the amount of goodwill acquired.

b$.$ Record the acquisition in a financial statements model.

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Compute the amount of goodwill acquired.