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.

Answer rating: 100% (QA)

Option b is correct Gain on goodwill 82000 60000 22000 2... View the full answer