Which of the following statements is true regarding goodwill?
A) For accounting purposes, goodwill may be amortized over a period not to exceed 40 years.
B) For accounting purposes, goodwill may be amortized over a period not to exceed 20 years.
C) For tax purposes, goodwill amortization cannot be deductible.
D) For tax purposes, goodwill amortization may be deductible over a 20-year period.
E) For tax purposes, goodwill amortization may be deductible over a 15-year period.

Question

Quizplus · Accepted Answer

For tax purposes in the United States, goodwill amortization is deductible over a 15-year period according to the IRS guidelines.

Which of the Following Statements Is True Regarding Goodwill