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  3. target, inc. had no book-tax temporary differences

Target, Inc. had no book-tax temporary differences prior to its acquisition by Buyer, Inc. Buyer...

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Accounting

image Target, Inc. had no book-tax temporary differences prior to its acquisition by Buyer, Inc. Buyer purchased 100% of Target for $60,000,000 cash on 12/31/23. The effective tax rate of both Buyer and Target is 25%. The following is summary of the balance sheet of Target immediately prior to the acquisition by Buyer on 12/31/23 and the related market values for its assets and liabilities (prior to impact of any tax accounting in acquisition). Assuming the transaction had been structured as an acquisition of stock and no section 338 election had been made, the goodwill recorded in the acquisition accounting adjusted opening balance sheet relating to this purchase transaction should be

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