1. An acquirer pays cash for the assets and liabilities of another company. Which of the following is most likely to be reported by the acquirer as one of the liabilities acquired from the other company?

   	A.	Contingent consideration (earnout) included as part of the acquisition
   	B.	Promised payments to former owners of the acquiree, not related to future employment
   	C.	Unreported unsettled lawsuit against the acquiree
   	D.	Warranty liability not previously reported by the acquiree

2. Potash Company acquires Spokane Corporation's assets and liabilities, in a nontaxable acquisition. The tax basis of Spokane's buildings is $50 million, with an average remaining life of 25 years, straight-line. The fair value of the buildings at the date of acquisition is $30 million. Assume the tax rate is 20%. Based on this information, because of the difference between reporting Spokane's buildings on the books versus tax return, each year for the next 25 years Potash will:

   	A.	Debit deferred tax asset $160,000
   	B.	Credit deferred tax asset $4,000,000
   	C.	Debit deferred tax liability $4,000,000
   	D.	Credit deferred tax asset $160,000