Peace Corporation acquired 100 percent of Soft Inc. in a nontaxable transaction on December 31, 20X1. The following balance sheet information is available immediately following the transaction: Peace Corporation Soft Inc. Book Value Fair Values Book Value Fair Values Cash $ 39,000 $ 39,000 $ 14,000 $ 14,000 Accounts Receivable, net 55,000 55,000 18,000 18,000 Inventory 76,000 83,000 7,000 10,000 Deferred Tax Asset 8,000 3,000 ? Investment in Soft 87,000 87,000 Equipment, net Patent 0 30,000 Total Assets $ 440,000 $ 76,000 Accounts Payable $ 59,000 $ 59,000 $ 12,000 $ 12,000 Accrued Vacation Payable 11,000 11,000 Deferred Tax Liability 6,000 3,000 ? Long-Term Debt 100,000 110,000 8,000 8,000 Common Stock 145,000 8,000 Retained Earnings 119,000 45,000 Total Liabilities and Equity $ 440,000 $ 76,000 Additional Information The current and future effective tax rate for both Peace and Soft is 40 percent. The recorded deferred tax asset for Peace relates to the book-tax differences arising from the allowance for doubtful Accounts and the Accrued vacation payable. The expenses associated with each of these amounts will not be deductible for tax purposes until the related accounts receivable are written off or until the employee vacation is actually paid out. The recorded deferred tax asset for Soft is related solely to the book-tax difference arising from the allowance for doubtful accounts. The recorded deferred tax liability in both Peace and Soft relates solely to the book-tax differences arising from the depreciation of their respective equipment. Accumulated depreciation on the financial accounting records of Peace and Soft is $47,000 and $16,000, respectively. The Soft patent was identified by Peace in the due diligence process and has not previously been recorded in the accounting records of Soft. The book and tax bases of all other assets and liabilities of Peace and Soft are the same. Required: a. Compute the tax bases of the assets and liabilities for Peace and Soft, where different from the amounts recorded in the respective accounting records. b. Compute the fair value of the deferred tax assets and deferred tax liabilities for Soft. c. Prepare all of the consolidation entries needed to prepare the worksheet for Peace and Soft at the date of acquisition. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) d. Prepare the consolidation worksheet for Peace and Soft at the date of acquisition. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)