acct 387 hw ch 16 q 20

On July 1 of year 1, Riverside Corporation (RC), a calendar-year taxpayer, acquired the assets of another business in a taxabie acquisition. When the purchase price was allocated to the assets purchased, RC determined it had purchased $1,620,000 of goodwill 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 year 2 , however, RC concluded that $635,000 of the goodwill had been impaired and wrote down the goodwill by $635.000 for book purposes. Required: a. What book-tax difference associated with its goodwill should RC report in year i? Is it favorable or unfavorable? is it permanent or temporary? 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? Complete this question by entering your answers in the tabs below. What book-tax difference associated with its goodwill should RC report in year 17 is if favorable or unfavorable? is it permanent or temporary? Note: Do not round intermediate computations. 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 $1,620,000 of goodwill 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 year 2 , however, RC concluded that $635,000 of the goodwill had been impaired and wrote down the goodwill by $635,000 for book purposes. Required: a. What book-tax difference associated with its goodwill should RC report in year 1? is it favorable or unfavorable? is it permanent or temporary? 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? Complete this question by entering your answers in the tabs below. 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