On July 11, 2020, Ted purchased a small software company for $200,000. He paid $120,000 for the fixed assets of the company and $80,000 for goodwill. How much amortization may Ted deduct on his 2020 tax return for the purchased goodwill? a. $5,750 b. $2,667 Oc. $80,000 Od. So Xin e. $5,333

On July 11, 2020, Ted purchased a small software company for $200,000. He paid $120,000 for the fixed assets of the company and $80,000 for goodwill. How much amortization may Ted deduct on his 2020 tax return for the purchased goodwill? a. $5,750 b. $2,667 Oc. $80,000 Od. So Xin e. $5,333

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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Question

On July 11, 2020, Ted purchased a small software company for $200,000. He paid $120,000 for the
fixed assets of the company and $80,000 for goodwill. How much amortization may Ted deduct on his
2020 tax return for the purchased goodwill?
a. $5,750
b. $2,667
c. $80,000
d. So
Xin e. $5,333

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