What is the annual schedule adjustment for each year

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Question - On January 1, Starlight Corp. (a calendar year taxpayer) recorded $600,000 of goodwill as a result of a business acquisition that it made. The corporation elected to amortize it over 15 years for tax accounting and uses the impairment method for financial accounting purposes. Assume the impairment write-offs are $15,000 in Year 1, $60,000 in Year 5, $300,000 in Year 25.

What is the annual Schedule M1(M3) adjustment for each year during the first 15 years of the amortization period?

What is the annual Schedule M1(M3) adjustment for each year during the last 25 years of the amortization period?

What is the deferred tax asset or liability balance for Years1,5, and 25, assuming a 35% marginal tax rate?

Reference no: EM132033652

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