What Is the Accounting Treatment for Goodwill That Is Consistent

question 8

Multiple Choice

What is the accounting treatment for goodwill that is consistent with AASB 112 "Income Taxes"?

• A) Treated as a deductible expense in the year of recognition.
• B) Treated as a non-deductible expense in the year of recognition and subsequent periods.
• C) The difference between the carrying amount and the tax base results to a taxable temporary difference.
• D) The difference between the carrying amount and the tax base results to a deductible temporary difference.
• E) The deductible temporary difference results to a deferred tax asset.

---

Definitions:

Irritable

Easily annoyed or angered, often displaying a tendency to be upset by minor disturbances or inconveniences.

Aerobic Exercise

Physical activity that relies on the oxygen to generate energy, improving cardiovascular conditioning.

Life Expectancy

The average period that an individual is expected to live as determined by statistical analysis, often influenced by factors such as genetics, lifestyle, and healthcare quality.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for rapid response to stressful or emergency situations by activating the fight-or-flight response.