• Company C acquired Company D on January 1, 2009, for $20,000,000 in a nontaxable business combination accounted for as a purchase
• Company D will be included in Company Cs consolidated tax return
• The identifiable net assets acquired have a fair value of $15,000,000 and a tax basis of $12,000,000. All of the temporary differences are taxable
• The enacted tax rate for 2009 and all future years is 40%
• Company D has no tax attribute carryforwards
• Immediately prior to the acquisition, Company C does not have any temporary differences but has an operating loss carry forward of $5,000,000; a deferred tax asset and a corresponding valuation allowance of $2,000,000 have been recognized by Company C for the tax benefits of that carry forward, prior to the acquisition
• As a result of the acquisition, management of Company C determines that the net operating loss carry forward can be utilized to offset the taxable temporary differences of Company D; the remainder of the deferred tax asset will require a valuation allowance at the acquisition date

Provide the final allocation of purchase price for financial statement purposes and discuss the treatment of any