Lily Enterprises acquires another corporation This acquisition created $30 million of goodwill for both book and tax purposes The $30 million in goodwill is amortized over 15 years for tax purposes but is not deductible for book purposes unless impaired Will this book tax difference create a perman...

The 30 million goodwill creates a 2 million goodwill amortization tax deduction each year for 15 ...

Lily Enterprises acquires another corporation. This acquisition created $30 million of goodwill for both book and tax

Question:

Lily Enterprises acquires another corporation. This acquisition created $30 million of for both book and tax purposes. The $30 million in is amortized over 15 years for tax purposes but is not deductible for book purposes unless impaired. Will this book-tax difference create a permanent or temporary book-tax difference for Lily?
Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...