? On February 1, Geraldo purchased a business and capitalized $500,000 of the
cost to goodwill.
? Book depreciation expense was $66,100, and MACRS depreciation was $77,800.
? Geraldo paid an $18,500 premium for its employee group term life insurance
plan and a $5,900 premium for its key-person life insurance policies.
? Geraldo accrued a $35,000 expense for the estimated settlement of a breach-ofcontract
suit that should go to court next year.
a. Compute Geraldo's taxable income.
b. Compute Geraldo's federal tax expense per books and federal tax payable.
1. Additional depreciation 77,800-66,100= 11,700 will be deductible
2.Good will allowed to be amortized in 15 years as per section 197, therefore amount ...
The expert examines a United States tax problems for Geraldo.