Question
6. During 2020, Sienar Systems, Inc purchased Correalian Drives, Inc. (one of its suppliers) using the assets method. As a part of this business, it
6. During 2020, Sienar Systems, Inc purchased Correalian Drives, Inc. (one of its suppliers) using the assets method. As a part of this business, it was determined the company purchased 1,200,000 of Goodwill.
a. How much is the book to tax difference with this purchase in 2020 and is it temporary or permanent? (5Pts)
b. In 2022, it was determined the goodwill was impaired to the tune of about $200,000. What is the book effect of the impairment in 2022? (5Pts)
c. What is the book to tax difference of the impairment in question 6.b. as reported on the form 1120? Is it temporary or permanent? (5Pts)
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