King's road recently acquired all of oxford corporation's stock and is now consolidating the financial data of this new subsidiary. king's road paid a total of $940,000 for oxford, which has the following accounts: fair value tax basisaccounts receivable $ 112,000 $ 112,000 inventory 209,000 209,000 land 108,000 108,000 buildings 208,500 155,000 equipment 293,750 232,000 liabilities (243,000 ) (243,000 )a. what amount of deferred tax liability arises in the acquisition? b. hat amounts will be used to consolidate oxford with king's road at the date of acquisition? c. on a consolidated balance sheet prepared immediately after this takeover, how much goodwill should king's road recognize? assume a 30 percent effective tax rate. a.what amount of deferred tax liability arises in the acquisition? deferred tax liability b. what amounts will be used to consolidate oxford with king's road at the date of acquisition? (credit balances should be indicated with minus sign.)assigned to specific accounts acquisition considerationc. on a consolidated balance sheet prepared immediately after this takeover, how much goodwill should king's road recognize? assume a 40 percent effective tax rate.

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?