15 Jan On November 13, Underhill Inc., a calendar year ta
On November 13, Underhill Inc., a calendar year taxpayer, purchased a business for a $750,000 lump-sum price. The business’s balance sheet assets had the following appraised FMV:Accounts receivable $ 38,000Inventory 177,000Tangible personality .. 400,000$615,000a. What is the cost basis of the goodwill acquired by Underhill on the purchase of this business?b. Compute Underhill’s goodwill amortization deduction for the year of purchase.c. Assuming a 35 percent tax rate, compute the deferred tax asset or deferred tax liability (identify which) resulting from Underhill’s amortization deduction.