Entity in nontaxable business combination

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Reference no: EM133209392

Taxpayer acquired an entity in a nontaxable business combination and the preliminary goodwill recorded for book purposes is $100,000. Accounts Receivable is the only asset acquired that had a different fair value ($35,000) and tax basis ($15,000). Tax rate is 25%. What is the final goodwill that will be recorded?

A. $105,000

B. $95,000

C. $120,000

D. $80,000

E. None of the Above

Reference no: EM133209392

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