If Z corporation buys the stock of X corporation is any goodwill created for tax purposes? Suppose
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Question:
- If Z corporation buys the stock of X corporation is any goodwill created for tax purposes?
- Suppose instead Z corp buys the assets of X corp, is it possible goodwill was created for tax purposes?
- If the answer to the previous questions is yes, how would we measure the value of the goodwill?
- Assume goodwill for tax and book were the same on the date of acquisition. Explain the difference between how the goodwill is treated for book as opposed to tax purposes.
- What do we call the excess of deductions over gross income?
- D Corp has gross income of $40,000 and deductible expenses of $100,000 in year 1 (Y1).The following year (Y2) it has an excess of gross income over otherwise deductible expenses of $50,000. What is the taxable income in Y2?
- Would it make a difference (and if so what would it be) if the results were reversed so the excess of gross income over deductible expenses was in Y1?
- When does a corporation deduct a net operating loss for book purposes?
Related Book For
Essentials Of Federal Taxation 2018
ISBN: 9781260007640
9th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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