P Co. purchased all the outstanding shares of S Co. The assets of S Co. include

equipment with a historical cost of $60,000 and accumulated depreciation of

$30,000. The tax base of this equipment is $20,000, and the fair value is $46,000. The

tax rate is 30%. With respect to this equipment, by how much will the deferred tax

liability increase when P Co. allocates the acquisition differential to calculate

goodwill?

a. $4,800

b. $7,800

c. $9,000

b. $26,000