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 $432,000. Ingrid allocated $72,000 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. 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 $21,000. How much amortization
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 $432,000. Ingrid allocated $72,000 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. 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 $21,000. How much amortization
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $432,000. Ingrid allocated
$72,000 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.
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 $21,000. How much amortization
expense on the phone list can Ingrid deduct in year 1, year 2, and year 3?
Year 1 amortization expense
Year 2 amortization expense
Year 3 amortization expense
Phone List
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