For a corporation, purchased goodwill generally leads to temporary book-tax differences.

Name: For a corporation, purchased goodwill generally leads to temporary book-tax differences.
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Question

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When a corporation purchases goodwill, it is typically amortized for tax purposes over 15 years, while for book purposes it may not be amortized at all or only over a longer period of time. Therefore, this difference in amortization leads to temporary book-tax differences.

For a Corporation, Purchased Goodwill Generally Leads to Temporary Book-Tax