Question

Identify the tax issue or issues suggested by the following situations, and state each issue in the form of a question.

Corporation TJ ceased business operations and was dissolved under state law. On the last day of its existence, TJ’s balance sheet showed $2,200 unamortized organizational costs and $12,000 unamortized goodwill.

Answer 1

Any unamortised cost and good will are treated as any other asset in the balance sheet and transfered to realisation account at the value in balance sheet as on date