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

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The Answer of Detroit Corporation sued Chicago Corporation for intentional damage to Detroit's goodwill. Detroit had created its goodwill through 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.

Detroit Corporation Sued Chicago Corporation for Intentional Damage to Detroit's