QUESTION NINE

Takeover Corp. purchased another business in $2021.$ The purchase price included $$100,000$ for goodwill. In $2023,$ the

acquired business was sold. The sale price included $$140,000$ for the goodwill.

Calculate the amount to be included in Takeover Corp.$\text{'}$s business income in $2023.$ Assume the Class $14\mathrm{.}1$ balance at $\frac{?}{\text{b}\text{a}\text{r}}($ Page $191)$

the beginning of $2021$ is $$0.$

CPA Competency $6\mathrm{.}2\mathrm{.}2$ Goodwill. Income tax reference: ITA: $13(1),20(1)()$; Reg. $1100(2).$