question archive On January 1, 2017, Don Buchanan acquires a business that has goodwill
On January 1, 2017, Don Buchanan acquires a business that has goodwill
Subject:AccountingPrice: Bought3
On January 1, 2017, Don Buchanan acquires a business that has goodwill. The amount of the purchase price that is allocated to goodwill is $60,000. The business has a taxation year that ends on December 31 and, for 2017, Don takes the maximum CCA deduction. On January 1, 2018, the business is sold. It is estimated that $82,000 of the sale price was for the goodwill. The resulting increase in Don’s 2018 Net Income For Tax Purposes is:
Select one:
a. $13,500.
b. $11,000.
c. $12,500.
d. $14,000.
