Firm W and Firm X both have goodwill and going concern value worth approximately $1 million However, only Firm X reports an amortization deduction with respect to its goodwill and going concern value on its tax return Can you explain this difference in tax treatment between the two firms ...

Firm W generated its goodwill and going concern value thro ...

Firm W and Firm X both have goodwill and going-concern value worth approximately $1 million. However, only

Question:

Firm W and Firm X both have and going-concern value worth approximately $1 million. However, only Firm X reports an amortization deduction with respect to its and going-concern value on its tax return. Can you explain this difference in tax treatment between the two firms?
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...