Which of the following intangible assets is subject to the 15-year amortization period?
A)The ownership rights to the TV program "Wheel of Fortune".
B)A professional football franchise purchased and relocated to Los Angeles.
C)Covenant not to compete for five years as part of the purchase of a business.
D)A purchased interest in a high tech partnership.
E)An interest under an existing lease of a oil rig.

Question

Quizplus · Accepted Answer

A covenant not to compete is considered an intangible asset and is subject to 15-year amortization period as per IRS rules. The other options are not subject to this specific amortization period.

Which of the Following Intangible Assets Is Subject to the 15-Year