Organizational expense is recognized immediately for finanical purpose and not for tax purpose. Tax purpose amortized over 15 years. So what happends to the expense.

My take: Book income lower than taxable income

100-30= 70 and Taxable income 100-2=98 so the difference of 28 is temporary caused and will be Def Tax asset in Year 1 as we paid in advance. Now for following years

The benefit is reversed out in Year 2 +2 , Year 3-2

so it will becomes taxable then.

So what should it be in year 2 and so on till year 15. will it be deferred tax liability or asset. I am unable to connect dots.

Thanks