On January 1, 2016, Uncle Company purchased 80 percent of Nephew Company's capital stock for $624,000 in cash and other assets. Nephew had a book value of $734,000 and the 20 percent noncontrolling interest fair value was $156,000 on that date. On January 1, 2015, Nephew had acquired 30 percent of Uncle for $329,500. Uncle's appropriately adjusted book value as of that date was $1,065,000. Separate operating income figures (not including investment income) for these two companies follow. In addition, Uncle declares and pays $25,000 in dividends to shareholders each year and Nephew distributes $6,000 annually. Any excess fair-value allocations are amortized over a 10-year period. Year 2016 2017 2018 Uncle Company $ 156,000 173,000 199,000 Nephew Company $ 33,200 49,600 58,600 a. Assume that Uncle applies the equity method to account for this investment in Nephew. What is the subsidiary's income recognized by Uncle in 2018? b. What is the net income attributable to the noncontrolling interest for 2018? a. Subsidiary income recognized Noncontrolling interest's share of income King's Road recently acquired all of Oxford Corporation's stock and is now consolidating the financial data of this new subsidiary. King's Road paid a total of $810,000 for Oxford, which has the following accounts: Accounts receivable Inventory Land Buildings Equipment Liabilities Fair Value Tax Basis $ 184,000 $ 184,000 132,000 132,000 114,000 114,000 221,750 157,000 212, 750 159,000 (272,000) (272,000) a. What amount of deferred tax liability arises in the acquisition? b. What amounts will be used to consolidate Oxford with King's Road at the date of acquisition? c. On a consolidated balance sheet prepared immediately after this takeover, how much goodwill should King's Road recognize? Assume a 40 percent effective tax rate. Complete this question by entering your answers in the tabs below. Required A Required B Required C What amount of deferred tax liability arises in the acquisition? Deferred tax liability