Tax effects of business combinations (taxable, market value differs from book value) Assume that on January 1, 2013, an investor company acquired 100% of the outstanding voting common stock of an investee company in exchange for $300,000. The transaction is a taxable asset acquisition under the Internal Revenue Code. The following financial statement information is for the investor company and the investee company on January 1, 2013, prepared immediately before this transaction. Current assets Noncurrent assets Total assets Liabilities Common stock ($1 par) Additional paid-in capital Retained earnings Total liabilities & equity Book Values Investor Investee $300,000 $160,000 450,000 200,000 $750,000 $360,000 $300,000 $160,000 40,000 20,000 260,000 160,000 150,000 20,000 $750,000 $360,000 Assume that the fair values of the investee's net assets approximated the recorded book values of the investee's net assets, except the fair value of the investee's identifiable noncurrent assets is $40,000 higher than book value. In addition, the investee's pre-transaction tax bases in its individual net assets approximate their reported book values. This difference relates entirely to tax- deductible items. Assume the marginal tax rate is 40% for the investor and investee. What amount of goodwill should be reported in the investor's consolidated balance sheet prepared immediately after this business combination? $60,000 $44,000 $76,000 $100,000