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

question 6

True/False

For consolidated tax return purposes, goodwill is amortized as a deduction to taxable income. Under financial accounting rules, no such amortization is allowed.

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Definitions:

Sole Proprietorship

A type of enterprise owned and operated by one person, where there is no legal distinction between the owner and the business operation.

Double Taxation

The imposition of two or more taxes on the same income, asset, or financial transaction.

Not-for-Profit Organization

An organization that operates for purposes other than making a profit, often focusing on social, educational, or charitable objectives.

Military Organization

An entity structured to use armed forces for purposes of defense, security, or warfare operations.