Kings Road recently acquired all of Oxford Corporations stock and is now consolidating the financial data of this new subsidiary. Kings Road paid a total of $1,030,000 for Oxford, which has the following accounts:

	Fair Value			Tax Basis
Accounts receivable	$	144,000		$	144,000
Inventory		182,000			182,000
Land		127,000			127,000
Buildings		283,250			230,000
Equipment		298,750			247,000
Liabilities		(283,000	)		(283,000	)

Note: Parentheses indicate a credit balance.

a.What amount of deferred tax liability arises in the acquisition:

Deferred tax liability:

b.

What amounts will be used to consolidate Oxford with King's Road at the date of acquisition? (Credit balances should be indicated with minus sign.)

c.	On a consolidated balance sheet prepared immediately after this takeover, how much goodwill should Kings Road recognize? Assume a 30 percent effective tax rate.
	Goodwill: