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never [62]
3 years ago
8

Detroit Corporation sued Chicago Corporation for intentional damage to Detroit's goodwill. Detroit had created its goodwill thro

ugh providing high-quality services to its customers. Thus, no basis for the goodwill appeared on Detroit's balance sheet. The suit was settled and Detroit received $1,500,000 for the damages to its goodwill.a. The $1,500,000 is not taxable because it represents a recovery of capital.b. The $1,500,000 is taxable because Detroit has no basis in the goodwill.c. The $1,500,000 is not taxable because Detroit did nothing to earn the money.d. The $1,500,000 is not taxable because Detroit settled the case.e. None of these.
Business
1 answer:
Grace [21]3 years ago
8 0

Answer:

d. The $1,500,000 is not taxable because Detroit settled the case

Explanation:

The $1,500,000 is not taxable because Detroit settled the case, Compensation received of damaging Goodwill is not taxable.

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