Parent Company P purchased 90% of Subsidiary Company S for stock worth $100,000. Subsidiary Company S had a net book value of $50,000 including: "bonds payable" at book value of $10,000 and fair value of $15,000: "inventory" with a book value of $5,000 and a fair value of $7,000; and "PP&E" with a book value of $10,000 and a fair value of $20,000. Assuming the tax rate is 40% (and ignoring any deferred taxes on goodwill) Net deferred taxes are:

The net deferred taxes are:$2,800

Explanation:

                              Book Value   Fair ValueDifferential

Inventory                5000   7000         2000

PP&E                         10000    20000         10000

Bonds Payable        -10000    -15000          -5000

Total                                                      7000

Tax Rate at 40%                                    x 40%

Net deferred taxes                             $2,800

convection currents in magma drive plate tectonics. the answer is true.

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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