During 2020 you purchased the following assets at the following prices: January 2nd: 100 shares of Apple, Inc., $12,000February 1st: 500 shares of Startup, Inc., $250,000August 1st: 4% partnership interest in Smart & Smarter, CPAs, $400,000August 1st: Trademark (registration) for “Best Tax Service,” your Schedule C tax advisory business for clients that Smart & Smarter wants no part of, $175,000 (including attorney’s fees)September 1st: Noncompete / Nondisclosure Agreement with former employee of your Schedule C business, $100,000 Calculate, state, and explain your total 2020 amortization deduction.

Given: To calculate the amortization deduction of total 2020 and explain as,

Answered: in Smart & Smarter, CPAs, $400,000…

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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During 2020 you purchased the following assets at the following prices:

January 2^nd: 100 shares of Apple, Inc., $12,000
February 1^st: 500 shares of Startup, Inc., $250,000
August 1^st: 4% partnership interest in Smart & Smarter, CPAs, $400,000
August 1^st: Trademark (registration) for “Best Tax Service,” your Schedule C tax advisory business for clients that Smart & Smarter wants no part of, $175,000 (including attorney’s fees)
September 1^st: Noncompete / Nondisclosure Agreement with former employee of your Schedule C business, $100,000

Calculate, state, and explain your total 2020 amortization deduction.

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