Question: Hello, please show step by step with calculation how to get the correct answer below. Thank you Tax effects of business combinations (taxable, market value

Hello, please show step by step with calculation how to get the correct answer below. Thank you

Hello, please show step by step with calculation how to get the

Tax effects of business combinations (taxable, market value differs from book value) Assume that on January 1, 2013, an investor company acquired 100\% of the outstanding voting common stock of an investee company in exchange for $75,000. The transaction is a taxable asset acquisition under the Internal Revenue Code. The following financial statement information is for the investor company and the investee company on January 1, 2013, prepared immediately before this transaction. Assume that the fair values of the investee's net assets approximated the recorded book values of the investee's net assets, except the fair value of the investee's identifiable noncurrent assets is $10,000 higher than book value. In addition, the investee's pre-transaction tax bases in its individual net assets approximate their reported book values. This difference relates entirely to tax-deductible items. Assume the marginal tax rate is 40% for the investor and investee. What amount of goodwill should be reported in the investor's consolidated balance sheet prepared immediately after this business combination? $11,000 $19,000 $15,000 $25,000

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