Differed tax asset

[archived_user]

For Research & Development:
If at the beginning $75K is expensed as R&D expense.
And at the first year tax base is $50K (75K-25K accumulated tax amortization) and asset has no carrying value.
Now why in this case amortization leads to a deferred tax? how is earning before tax less than taxable income?

 

[archived_user]

I don’t quite understand the situation. Is this a question from the curriculum? If so, I can look at the details and, perhaps, give you a helpful answer.