Lumivar acquires a network of veterinary clinics and recognises goodwill of 520,000; its tax base is 600,000 (tax data). The forecasts used (case assumptions) make it probable that only 50,000 of the difference will be used. Tax rate: 20%. Compute the difference and the deferred tax asset to be recognised in the combination.
- Carrying amount of goodwill
- 520,000
- Tax base of goodwill
- 600,000
- Part of the difference usable against probable profit
- 50,000
- Tax rate (%)
- 20 %