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Record the acquisition in a financial statements

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Phoenix Corp acquired the business Data Resources for $300,000 cash and assumed all liabilities at the date of purchase. Data's books showed tangible assets of $260,000, liabilities of $40,000, and stockholders equity of $220,000. An appraiser assessed the fair market value of the tangible assets at $235,000 at the date of acquisition. Phoenix 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.

1990_264-B-A-I-A (3512).png

c. When will the goodwill be written off under the impairment rules? 

d. Record the acquisition in general journal format. 

Reference no: EM13928378

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