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8 O pts Five years ago, Port Co paid a $5 million lump-sum price to purchase a business. Port allocated $600,000 of the price to
8 O pts Five years ago, Port Co paid a $5 million lump-sum price to purchase a business. Port allocated $600,000 of the price to goodwill. This year, Port's auditors required Port to write the goodwill down to $500,000 and record a $100,000 impairment expense. Because of the accounting treatment of goodwill, Ports has a current: O $100,000 unfavorable permanent book/tax difference O $40,000 favorable temporary book/tax difference O $60,000 unfavorable temporary book/tax difference $100,000 unfavorable temporary book/tax difference
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