Question Details

Accounting Homework Help

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.