After several profitable years running her business, Ingrid decided to acquire the assets of a small competing business. On May 1 of year 1, Ingrid acquired the competing business for $324,000. Ingrid allocated $54,000 of the purchase price to goodwill. Ingrid's business reports its taxable income on a calendar-year basis. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Problem 10-71 Part b (Algo) b. In lieu of the original facts, assume that Ingrid purchased only a phone list with a useful life of five years for $12,000. How much amortization expense on the phone list can Ingrid deduct in year 1, year 2, and year 3?
After several profitable years running her business, Ingrid decided to acquire the assets of a small competing business. On May 1 of year 1, Ingrid acquired the competing business for $324,000. Ingrid allocated $54,000 of the purchase price to goodwill. Ingrid's business reports its taxable income on a calendar-year basis. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Problem 10-71 Part b (Algo) b. In lieu of the original facts, assume that Ingrid purchased only a phone list with a useful life of five years for $12,000. How much amortization expense on the phone list can Ingrid deduct in year 1, year 2, and year 3?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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am. 09.
Transcribed Image Text:After several profitable years running her business, Ingrid decided to acquire the assets of a small competing business. On May 1 of year 1, Ingrid acquired the competing
business for $324,000. Ingrid allocated $54,000 of the purchase price to goodwill. Ingrid's business reports its taxable income on a calendar-year basis. (Do not round
intermediate calculations. Round your answers to the nearest whole dollar amount.)
Problem 10-71 Part b (Algo)
b. In lieu of the original facts, assume that Ingrid purchased only a phone list with a useful life of five years for $12,000. How much amortization expense on the phone list can
Ingrid deduct in year 1, year 2, and year 3?
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