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Four years ago, Martin Inc. paid a $5 million lump-sum price to purchase a business. Martin allocated $600,000 of the price to goodwill. This year,
Four years ago, Martin Inc. paid a $5 million lump-sum price to purchase a business. Martin allocated $600,000 of the price to goodwill. This year, Martin's auditors required Martin to write the goodwill down to $500,000 and record a $100,000 impairment loss. Because of the accounting treatment of goodwill, Martin has a current: Select one: a. $60,000 unfavorable temporary book/tax difference b. $40,000 favorable temporary book/tax difference C. $60,000 favorable permanent book/tax difference d. $100,000 unfivorable temporary book/tax difference e. $100,000 unfavorable permanent book/tax difference
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