10) tanner company, a subsidiary acquired for cash, owned equipment with a fair value higher than the book value as of the date of combination. a consolidated balance sheet prepared immediately after the acquisition would include this difference in: a) goodwill. b) retained earnings. c) deferred charges. d) equipment.

On january 15, the end of the first biweekly pay period of the year, north company’s payroll register showed that its employees earned $32,000 of sales salaries. withholdings from the employees’ salaries include fica social security taxes at the rate of 6.2%, fica medicare taxes at the rate of 1.45%, $3,000 of federal income taxes, $772 of medical insurance deductions, and $260 of union dues. no employee earned > $7,000 in this first period. prepare the journal entry to record north company’s january 15 (employee) payroll expenses and liabilities.