Assume El Dorado Inc. buys a competitor’s assets for $900,000. Of the $900,000 acquisition price, $600,000 is allocated to Section 197 Intangible Assets as follows: Customer Lists $60,000 Trade Name $90,000 Non-Compete Covenant 80,000 Patent $120,000 Goodwill $250,000 What is El Dorado’s accumulated amortization and remaining basis in each of its Section 197 Intangibles after 3 years? Use a table to present your answer.
Assume El Dorado Inc. buys a competitor’s assets for $900,000. Of the $900,000 acquisition price, $600,000 is allocated to Section 197 Intangible Assets as follows: Customer Lists $60,000 Trade Name $90,000 Non-Compete Covenant 80,000 Patent $120,000 Goodwill $250,000 What is El Dorado’s accumulated amortization and remaining basis in each of its Section 197 Intangibles after 3 years? Use a table to present your answer.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Assume El Dorado Inc. buys a competitor’s assets for $900,000. Of the $900,000 acquisition price, $600,000 is allocated to Section 197 Intangible Assets as follows:
|
Customer Lists |
$60,000 |
|
Trade Name |
$90,000 |
|
Non-Compete Covenant |
80,000 |
|
Patent |
$120,000 |
|
|
$250,000 |
What is El Dorado’s accumulated amortization and remaining basis in each of its Section 197 Intangibles after 3 years? Use a table to present your answer.
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