LNS Corporation reports book income of $2,040,000. Included in the $2,040,000 is $36,500 of tax-exempt interest...

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LNS Corporation reports book income of $2,040,000. Included in the $2,040,000 is $36,500 of tax-exempt interest income. LNS reports $1,707,500 in ordinary and necessary business expenses. What is LNS Corporation's taxable income for the year? Taxable income On June 1 of year 1, Riverside Corp. (RC), a calendar-year taxpayer, acquired the assets of another business in a taxable acquisition. When the purchase price was allocated to the assets purchased, RC determined it had purchased $1,557,000 of goodwill for both book and tax purposes. At the end of year 1, the auditors for RC determined that the goodwill had not been impaired during the year. In year 2, however, the auditors concluded that $505,000 of the goodwill had been impaired, and they required RC to write down the goodwill by $505,000 for book purposes. Required: a. What book-tax difference associated with its goodwill should RC report in year 1? Is it favorable or unfavorable? Is it permanent or temporary? b. What book-tax difference associated with its goodwill should RC report in year 2? Is it favorable or unfavorable? Is it permanent or temporary? Req A Req B What book-tax difference associated with its goodwill should RC report in year 1? Is it favorable or unfavorable? Is it permanent or temporary? (Do not round intermediate computations.) Book-tax difference Is it favorable or unfavorable? Is it permanent or temporary? Req A Req B What book-tax difference associated with its goodwill should RC report in year 2? Is it favorable or unfavorable? Is it permanent or temporary? (Do not round intermediate computations.) Book-tax difference Is it favorable or unfavorable? Isit permanent or temporary? LNS Corporation reports book income of $2,040,000. Included in the $2,040,000 is $36,500 of tax-exempt interest income. LNS reports $1,707,500 in ordinary and necessary business expenses. What is LNS Corporation's taxable income for the year? Taxable income On June 1 of year 1, Riverside Corp. (RC), a calendar-year taxpayer, acquired the assets of another business in a taxable acquisition. When the purchase price was allocated to the assets purchased, RC determined it had purchased $1,557,000 of goodwill for both book and tax purposes. At the end of year 1, the auditors for RC determined that the goodwill had not been impaired during the year. In year 2, however, the auditors concluded that $505,000 of the goodwill had been impaired, and they required RC to write down the goodwill by $505,000 for book purposes. Required: a. What book-tax difference associated with its goodwill should RC report in year 1? Is it favorable or unfavorable? Is it permanent or temporary? b. What book-tax difference associated with its goodwill should RC report in year 2? Is it favorable or unfavorable? Is it permanent or temporary? Req A Req B What book-tax difference associated with its goodwill should RC report in year 1? Is it favorable or unfavorable? Is it permanent or temporary? (Do not round intermediate computations.) Book-tax difference Is it favorable or unfavorable? Is it permanent or temporary? Req A Req B What book-tax difference associated with its goodwill should RC report in year 2? Is it favorable or unfavorable? Is it permanent or temporary? (Do not round intermediate computations.) Book-tax difference Is it favorable or unfavorable? Isit permanent or temporary?