The following information applies to the questions displayed below.] 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 $444,000. Ingrid allocated $74,000 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 $22,000. How much amortization expense on the phone list can Ingrid deduct in year 1, year 2, and year 3?
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Problem 10-71 (LO 10-4) (Algo)
[The following information applies to the questions displayed below.]
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 $444,000. Ingrid allocated $74,000 of the purchase price to
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 $22,000. How much amortization expense on the phone list can Ingrid deduct in year 1, year 2, and year 3?
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