Leftwich recently purchased all of Kew Corporations stock and is now consolidating the financial data of this

Leftwich recently purchased all of Kew Corporation’s stock and is now consolidating the financial data of this new subsidiary. Leftwich paid a total of $650,000 for the company, which has the following accounts:

Assume that the effective tax rate is 30 percent. On a consolidated balance sheet prepared immediately after this takeover, what impact does the acquisition of Kew have on the individual asset and liability accounts reported by the business combination?

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Fair Value $110,000 130,000 100,000 180,000 200,000 (220,000) Tax Basis $110,000 130,000 100,000 140,000 150,000 (220,000) Accounts receivable .. Inventory 2 Buildings Equipment Liabilities