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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This statement is true. In consolidated tax returns, goodwill is treated as a deductible asset that reduces taxable income over time, while under financial accounting rules, goodwill is not amortized but must be tested annually for impairment.

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