Check my work Peace Corporation acquired 100 percent of Soft Inc. in a nontaxable transaction on December 31, 20X1. The following balance sheet Information is available immediately following the transaction Peace Corporation Book Value Fair Valves $ 32,000 $ 32,000 58,000 53,660 80,000 87.000 9,000 82,000 12,000 160,000 195.000 Soft Inc Book Value For Values $11,000 $11,000 12.000 12.000 5.000 12,000 2,090 42.000 26,000 Cash Accounts Receivable, net Inventory Deferred Tax Asset Investment in Soft Equipment, net Patent Total Assets Accounts Payable Accrued Vacation Payable Deferred Tax Liability Long-Term Debt Common Stock Retained Earnings Total Liabilities and Equity 30,000 e $60.0 516,000 $14,000 $ 56,000 12,600 5421,000 $ 56,000 12,000 6,000 100,000 130,000 127,000 5621,900 110,000 9.000 4.000 9.000 9.000 24,000 160.000 Additional Information 1. The current and future effective tax rate for both Peace and Soft is 40 percent 2. The recorded deferred tax asset for Peace relates to the book-tax differences arising from the allowance for doubtful Accounts and the Accrued vacation payable. The expenses associated with each of these amounts will not be deductible for tax purposes unte intil the employee vacation is actually paid out Check my work Additional Information 1. The current and future effective tax rate for both Peace and Soft is 40 percent 2. The recorded deferred tax asset for Peace relates to the book tax differences arising from the allowance for doubtful Accounts and the Accrued vacation payable. The expenses associated with each of these amounts will not be deductible for tax purposes until the related accounts receivable are written off or until the employee vacation is actually paid out 3. The recorded deferred tax asset for Soft is related solely to the book tax difference arising from the allowance for doubtful accounts 4. The recorded deferred tax liability in both Peace and Soft relates solely to the book tax differences arising from the depreciation of their respective equipment 5. Accumulated depreciation on the financial accounting records of Peace and Soft is $46,000 and $14,000, respectively 6. The Soft patent was identified by Peace in the due diligence process and has not previously been recorded in the accounting records of Soft 7. The book and tax bases of all other assets and liabilities of Peace and Soft are the same Required: a compute the tax bases of the assets and abilities for Peace and Sott, where different from the amounts recorded in the respective accounting records Peace Tax Basis Calculations Soft Tax Basis Calculations Tax basis of accounts receivable Tax basis of accrued vacation payable Tax basis of equipment Next > Rru Check my w Required: a Compute the tax bases of the assets and liabilities for Peace and Soft, where different from the amounts recorded in the respective accounting records. Peace Tax Basis Calculations Soft Tax Banks Calculations Tax basis of accounts receivable Tax basis of accrued vacation payable Tax basis of equipment Tax basis of patent b. Compute the fair value of the deferred tax assets and deferred tax liabilities for Soft Total DTA Total DTL related to related to Check my work c. Prepare all of the consolidation entries needed to prepare the worksheet for Peace and Son at the date of acquisition of no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries Record the optional accumulated depreciation consolidation entry. Note: Enter debits before credits. Accounts Debit Credit Event 3 view consolidation entries Clear entry Record entry d. Prepare the consolidation worksheet for Peace and Soft at the date of acquisition (Values in the first two columns (the parent and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) PEACE CORPORATION AND SUBSIDIARY Consolidation Balance Sheet Worksheet December 31, 20X1 Consolidation Entries Peace Corp Soft Co DR CR Consolidated Balance Sheet Cash Accounts receivable Inventory natny Next > PEACE CORPORATION AND SUBSIDIARY Consolidation Balance Sheet Worksheet December 31, 20X1 Consolidation Entries Peace Corp. Soft Co. DR CR Consolidated Balance Sheet Cash Accounts receivable Inventory Deferred tax asset Equipment Less: Accumulated depreciation Investment in Soft Patent Goodwill Total Assets 0 $ 0$ 0 $ $ Liabilities & Stockholders' Equity Accounts payable Accrued vacation payable Deferred tax liability mo 4 of 5 Next > Deferred tax asset Equipment Less Accumulated depreciation Investment in Soft Patent Goodwill Total Assets $ 0 $ 0 0 $ 0 $ Liabilities & Stockholders' Equity Accounts payable Accrued vacation payable Deferred tax liability Long-term debt Common stock Retained earnings Total Liabilities & Equity 0 0 S 0 0 $ 0