On January 2,2014,Fran acquires a business from Chuck.Among the assets purchased are the following intangibles: patent with a 7-year remaining life,a covenant not to compete for 10 years,and goodwill. Of the purchase price,$140,000 was paid for the patent and $60,000 for the covenant.The amount of the excess of the purchase price over the identifiable assets was $100,000.What is the amount of the amortization deduction for 2014?
A)$10,667.
B)$16,000.
C)$20,000.
D)$32,667.
E)None of these.

Question

Quizplus · Accepted Answer

The Answer of On January 2,2014,Fran acquires a business from Chuck.Among the assets purchased are the following intangibles: patent with a 7-year remaining life,a covenant not to compete for 10 years,and goodwill. Of the purchase price,$140,000 was paid for the patent and $60,000 for the covenant.The amount of the excess of the purchase price over the identifiable assets was $100,000.What is the amount of the amortization deduction for 2014?
A)$10,667.
B)$16,000.
C)$20,000.
D)$32,667.
E)None of these.

On January 2,2014,Fran Acquires a Business from Chuck