King’s Road recently acquired all of Oxford Corporation’s stock and is now consolidating...

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 $850,000 for Oxford, which has the following accounts:

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.