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On November 13, Underhill, Incorporated, a calendar year taxpayer, purchased a business for a $750,000...

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Accounting

On November 13, Underhill, Incorporated, a calendar year taxpayer, purchased a business for a $750,000 lump-sum price. The businesss balance sheet assets had the following appraised FMV:
Accounts receivable $ 38,000
Inventory 177,000
Tangible personalty 400,000
$ 615,000
Required:
What is the cost basis of the goodwill acquired by Underhill on the purchase of this business?
Compute Underhills goodwill amortization deduction for the year of purchase.
Assuming a 21 percent tax rate, compute the deferred tax asset or deferred tax liability (identify which) resulting from Underhills amortization deduction.

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