Phoenix Corporation acquired the business Sun Systems for $315,000 cash and assumed all liabilities at...
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Accounting
Phoenix Corporation acquired the business Sun Systems for $315,000 cash and assumed all liabilities at the date of purchase. Suns books showed tangible assets of $330,000, liabilities of $18,000, and stockholders equity of $312,000. An appraiser assessed the fair market value of the tangible assets at $305,000 and liabilities at $18,000 at the date of acquisition. Phoenix Corporations financial condition just prior to the acquisition is shown in the following statements model.
Required
1 Compute the amount of goodwill acquired.
2 Record the acquisition in general journal format.
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