Please help explain what the Acquisition Differential represent? And why do the changes to the Assets / Liabilities need to be adjusted?

EXHIBIT 1: Calculation and amortization of acquisition differential SPECIFIC INSTRUCTIONS: Only the BLUE CELLS will be marked. The black numbers are "CHECK FIGURES" to ensure you are on the right track. Debits are to be shown as positive numbers and Credits are to be shown as negative numbers. Select account names from drop-down boxes provided. If a cell is zero, insert a zero. If left blank and the correct answer is zero, there will be no marks assigned. Step 1: Calculation, allocation, and changes to acquisition differential Balance - goodwill $88,000 Step 2: Amortization of the Acquisition Differential Schedule Inventory (1 Year) Warehouse - see note A below (5 years) Goodwill (Year 4, \$2,700; Year 5, \$540; Year 6, \$1,3 Note A - Show the formula (calculation) for the annual warehouse amortization using this format: amount/useful life. The response must show the math. Do not include $. Negative numbers are to be shown with a -, ignore any commas. For example, inventory would read: 15000/1 EXHIBIT 1: Calculation and amortization of acquisition differential SPECIFIC INSTRUCTIONS: Only the BLUE CELLS will be marked. The black numbers are "CHECK FIGURES" to ensure you are on the right track. Debits are to be shown as positive numbers and Credits are to be shown as negative numbers. Select account names from drop-down boxes provided. If a cell is zero, insert a zero. If left blank and the correct answer is zero, there will be no marks assigned. Step 1: Calculation, allocation, and changes to acquisition differential Balance - goodwill $88,000 Step 2: Amortization of the Acquisition Differential Schedule Inventory (1 Year) Warehouse - see note A below (5 years) Goodwill (Year 4, \$2,700; Year 5, \$540; Year 6, \$1,3 Note A - Show the formula (calculation) for the annual warehouse amortization using this format: amount/useful life. The response must show the math. Do not include $. Negative numbers are to be shown with a -, ignore any commas. For example, inventory would read: 15000/1