Because good will is amortized over 15 years for tax purposes, but is not amortized for financial reporting:
a. impairment of goodwill will result in a deferred tax liability
b. there are no deferred tax implications.
c. a deferred tax liability results from amortization which will not be utilized until goodwill is impairment adjusted or the company is later sold.
d. a subsidiary will include any goodwill amortization the parent deducts in its taxable income.
c
Business