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On December 31 , Year 5, Darrell Inc. purchased 100% of the outstanding shares of Kindersley Company for $7,665 cash. Three different values for Kindersley's

image text in transcribed On December 31 , Year 5, Darrell Inc. purchased 100% of the outstanding shares of Kindersley Company for $7,665 cash. Three different values for Kindersley's balance sheet accounts on the date of acquisition were as follows: All differences between carrying amount and the tax base are temporary differences for the items listed above. The patent has an estimated useful life of 8 years. Any goodwill reported on the consolidated balance sheet pertains only to Kindersley and is redundan for tax purposes. A goodwill impairment loss of $375 was reported in Year 7. The tax rate for both companies is 40%. Assume that future income taxable payable on the separate entity financial statements of the parent and subsidiary are as follows: Required: (a) Calculate goodwill and future income taxes payable for the consolidated balance sheet at the date of acquisition. (Omit $ sign in your response.) (b) Prepare a changes to acquisition schedule for Years 5 through 7. (Leave no cells blank - be certain to enter " 0 " wherever required. Negative/Deductible amounts should be indicated by a minus sign. Omit $ sign in your response.)

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