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.
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c. When will the goodwill be written off under the impairment rules?
d. Record the acquisition in general journal format.