In a given year, Adams Corporation has goodwill impairment in excess of the allowable amortization for tax purposes. Adams has a favorable temporary book-tax difference for that year.
Goodwill impairment in excess of tax goodwill creates either a permanent difference or an unfavorable temporary book-tax difference.

Question

Quizplus · Accepted Answer

Goodwill impairment in excess of tax goodwill creates a permanent difference, not a temporary one, as it is not deductible for tax purposes.

In a Given Year, Adams Corporation Has Goodwill Impairment in Excess