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Help with questions 7-8, U.S 2018 tax laws are what apply. 7. During 2020, Sienar Systems, Inc purchased Correalian Drives, Inc. (one of its suppliers)

Help with questions 7-8, U.S 2018 tax laws are what apply. image text in transcribed

7. 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. In 2022, it was determined the goodwill was impaired to the tune of about $200,000. a. How much is the book to tax difference with this purchase in 2020 and is it temporary or permanent? b. What is the book effect of the impairment in 2022? C. What is the book to tax difference of the impairment? Is it temporary or permanent? 8. In 2020, Bespin Gas Systems, Inc (a C-Corporation), made a charitable donation of $100,000 to the Wookie Relief Fund (a qualifying charity). For 2020, they reported net income of $550,000, which included the $100,000 donation, a $50,000 dividends received deduction and a $10,000 Net Operating Loss carryover, from the previous year. a. What is the permitted charitable deduction allowed in 2020? b. What is the effect of the remaining amount (both amount and time of the carryover)

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