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 $306,000. Ingrid allocated $51,000 of the purchase price to goodwill. Ingrid's business reports its taxable income on a calendar-year basis. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. b. In lieu of the original facts, assume that Ingrid purchased only a phone list with a useful life of five years for $10,500. How much amortization expense on the phone list can Ingrid deduct in year 1, year 2, and year 3? Answer is complete but not entirely correct. Year 1 amortization expense Year 2 amortization expense Year 3 amortization expense $ S $ Phone: List 2,100 x 2,100 X 2,100

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 $306,000. Ingrid allocated $51,000 of the purchase price to goodwill. Ingrid's business reports its taxable income on a calendar-year basis. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. b. In lieu of the original facts, assume that Ingrid purchased only a phone list with a useful life of five years for $10,500. How much amortization expense on the phone list can Ingrid deduct in year 1, year 2, and year 3? Answer is complete but not entirely correct. Year 1 amortization expense Year 2 amortization expense Year 3 amortization expense $ S $ Phone: List 2,100 x 2,100 X 2,100

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter18: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 25P

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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 $312,000. Ingrid allocated $52,000 of the purchase price to goodwill. Ingrid’s business reports its taxable income on a calendar-year basis. a. How much amortization expense on the goodwill can Ingrid deduct in year 1, year 2, and year 3?
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