Question: Six years ago Corporation CN purchased a business and capitalized
Six years ago, Corporation CN purchased a business and capitalized $200,000 of the purchase price as goodwill. Through this year, CN has deducted $74,000 amortization with respect to this goodwill. At the end of the year, CN sold the business for $2 million, $250,000 of which was allocable to goodwill. Determine the amount and character of CN’s gain from its sale of goodwill.
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