On January 1st, 2017, Tommy Corp acquired the assets of Kunle Corp in a taxable

acquisition. As part of the transaction, Tommy Corp recognized $180,000 of goodwill for both

financial accounting and tax purposes. During 2018, Tommy Corp determined that the carrying

value of the goodwill should be reduced to $150,000. What is the book tax difference for

goodwill in 2018?

A. $18,000 favorable

B. $18,000 unfavorable

C. $30,000 favorable

D. $30,000 unfavorable

E. None of the above