Parent Company P purchased 90% of Subsidiary Company S for stock worth $100,000. Subsidiary Company S had a net book value of $50,000 including: "bonds payable" at book value of $10,000 and fair value of $15,000: "inventory" with a book value of $5,000 and a fair value of $7,000; and "PP&E" with a book value of $10,000 and a fair value of $20,000. Assuming the tax rate is 40% (and ignoring any deferred taxes on goodwill) Net deferred taxes are:__________
