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Porpoise acquires 100% of Sunfish in a tax-free business combination. The applicable income tax rate...

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Accounting

Porpoise acquires 100% of Sunfish in a tax-free business combination. The applicable income tax rate is 30%. Based on the following information about the assets and liabilities of Sunfish, what amount should Porpoise record as a deferred tax balance for this acquisition for purposes of consolidation on the date of acquisition? Enter a minus sign to denote a credit (e.g.-200).

Old book basis Old tax basis Fair value
Cash $200,000 $200,000 $200,000
Equipment, net of depreciation 1,000,000 500,000 750,000
Patents 0 0 3,245,961
Accounts payable (300,000) (300,000) (300,000)
Deferred income taxes payable (150,000) NA ?
Notes payable (200,000) (200,000) (230,000)

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