Problem $16-39($LO $16-2)($Algo$)$

On July $1$ of year $1,$ Riverside Corporation $($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 $$1,962,000$ of go for both book and tax purposes. At the end of year $1,$ RC determined that the goodwill had not been impaired during the year. In $2,$ however, RC concluded that $$500,000$ of the goodwill had been impaired and wrote down the goodwill by $$500,000$ for bo$0$ purposes.

Required:

a$.$ What book$-$tax difference associated with its goodwill should RC report in year $1?$ Is it favorable or unfavorable? Is it permane temporary?

b$.$ What book$-$tax difference associated with its goodwill should RC report in year $2?$ Is it favorable or unfavorable? Is it permane temporary?

Complete this question by entering your answers in the tabs below.

Required 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?

Note: Do not round intermediate computations.

Show less A

$\backslash$table$[[$Book$-$tax difference,$