A calendar year corporation Zeeb acquires a business from a sole proprietor Vince, and Zeeb records $360,000 of goodwill for book and tax purposes. The acquisition takes place on November 1.

Assume the facts of the previous question except the corporation acquires all the shares of Vince and records $360,000 of goodwill for book purposes.

a) How much goodwill does Zeeb record for tax purposes [answerA]

Assume Zeeb originally acquired the assets of Vince. After 5 years $50,000 of goodwill is considered impaired for book purposes.

a) How much goodwill is deducted for tax purposes in year 5

b) How much if any book/tax difference is recorded in year 5

c) If there is a difference is it permanent (P) or temporary (T)

d) If there is a difference is it favorable (F) or unfavorable (U)