Corporation A and Corporation Z both have business goodwill worth approximately $1 million The goodwill is a capital asset to Corporation A and a Section 1231 asset to Corporation Z Can you explain this apparently inconsistent tax characterization ...

Corporation A generated its goodwill through its own business operations Such int ...

Corporation A and Corporation Z both have business goodwill worth approximately $1 million. The goodwill is a

Question:

A and Z both have business worth approximately $1 million. The is a capital asset to A and a Section 1231 asset to Z. Can you explain this apparently inconsistent tax characterization?
Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...