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

Arizona Corporation acquired the business Data Systems for $$300,000$ cash and assumed all liabilities at the date of purchase. Data$$s books showed tangible assets of $$300,000,$ liabilities of $$15,000,$ and stockholders$$ equity of $$285,000.$ An appraiser assessed the fair market value of the tangible assets at $$290,000$ at the date of acquisition.

Required:

Compute the amount of goodwill acquired.

Record the acquisition in a financial statements model. Arizona Corp.$$s financial condition just prior to the acquisition is shown in the financial statements model.