On acquiring a business, Isbrand recognises goodwill of 350,000; under the tax law (case data), its tax base is 430,000. Sufficient taxable profit is probable. Tax rate: 25%. Compute the difference and the deferred tax asset.
- Carrying amount of goodwill
- 350,000
- Tax base of goodwill
- 430,000
- Tax rate (%)
- 25 %