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Business
Accounting
After several profitable

After several profitable

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $378.000. Ingrid allocated $63,000 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 $16.500. 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 experise Phone List
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 $378.000. Ingrid allocated $63,000 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 $16.500. 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 experise Phone List
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