For tax purposes, goodwill is amortized annually and is, therefore, a deductible expense on a company's tax return. ZAGG amortized goodwill over a period of 15 years. Note 8 reports a deferred income tax asset of $1,801,000 related to goodwill at December 31, 2017. Explain how goodwill created a deferred income tax asset for ZAGG. Show how ZAGG arrived at this number. You may assume a 35% federal statutory tax rate and a 3\% blended state statutory tax rate and that ZAGG began amortizing goodwill for tax purposes starting in July, 2016. [Hint: determine the net (ie, after amortization) value of goodwill for tax purposes to compare to the net book value of goodwill.] The changes in the carrying amount of goodwill for the year ended December 31, 2017 and 2016, are as follows: The components of income tax (provision) benefit for the years ended December 31, 2017, 2016 and 2015, are: The following is a reconciliation of the income taxes computed using the federal statutory rate to the provision for income taxes for the years ended December 31, 2017, 2016 and 2015