For Consolidated Tax Return Purposes, Purchased Goodwill Is Amortized as a Deduction

question 114

True/False

For consolidated tax return purposes, purchased goodwill is amortized as a deduction to taxable income over 15 years. Under financial accounting rules, 40-year amortization is allowed.

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Definitions:

Schachter's Two-factor

A theory of emotion that states emotions are composed of two factors: physiological arousal and cognitive label, both of which are necessary to experience emotion.

James-Lange Theory

A theory of emotion suggesting that emotions occur as a result of physiological reactions to events.

Cannon-Bard Theory

A theory of emotion that proposes emotions and bodily responses occur simultaneously, rather than one causing the other.

Attributions

Explanations or reasons given for why things happen, especially in terms of people's behaviors and outcomes.