On January 1, 2020, Credit Incorporated Recorded Goodwill Valued at $270,000

On January 1, 2020, Credit Incorporated recorded goodwill valued at $270,000 when it acquired the assets of another company. At the end of 2020, the auditors of Credit Incorporated determined that the goodwill had been impaired by $50,000, and Credit Incorporated wrote down the book value of the goodwill by $50,000. During 2021, the goodwill was not further impaired. In 2022, additional goodwill was impaired and was written down another $18,000 for financial reporting purposes. What is the temporary book-tax difference associated with the purchased goodwill in 2020, 2021, and 2022? Are the differences favorable or unfavorable? Are the differences permanent or temporary?

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2020 $32,000 unfavorable, temp...

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