On May 1, Sessi Inc A Compute the Cost Basis of the Goodwill Acquired by a Business

On May 1, Sessi Inc., a calendar year corporation, purchased a business for a $2 million lump-sum price. The business' balance sheet assets had the following appraised FMV. $$\begin{array} { l r } \text { Accounts receivable } & \$ 38,900 \\\text { Inventory } & 450,000 \\\text { Tangible personalty } & 225,000 \\\text { Realty: } & \\\text { Building } &500,000\\\text { Land } & 50,000 \\& \$ \underline { 1.263 .900 }\end{array}$$ a. Compute the cost basis of the goodwill acquired by Sessi Inc. on the purchase of this business.
b. Compute Sessi's goodwill amortization deduction for the year of purchase.
c. Use a 35 percent tax rate to compute Sessi's deferred tax liability resulting from the amortization deduction.