There are two categories of intangibles, Section 197 those acquired by the taxpayer as part of an acquisition of a business, these assets are amortized over the period of 15years and non-section 197 intangibles. The amount of Section 197 intangible assets included in $250,000 purchase price.
There are two categories of intangibles, Section 197 those acquired by the taxpayer as part of an acquisition of a business, these assets are amortized over the period of 15years and non-section 197 intangibles. The amount of Section 197 intangible assets included in $250,000 purchase price.
Solution Summary: The author explains that Section 197 intangibles are acquired by a taxpayer as part of an acquisition of the business and are amortized over 15 years.
Definition Definition Intangible asset that includes proprietary or intellectual property and brand value of a firm. Goodwill is recorded in the books when a firm purchases another firm and the purchase price is more than the fair value of net identifiable assets of the acquired business. The amount of goodwill is recorded on the asset side of the balance sheet (statement of financial position).
Chapter 8, Problem 14P
a
To determine
Introduction:There are two categories of intangibles, Section 197 those acquired by the taxpayer as part of an acquisition of a business, these assets are amortized over the period of 15years and non-section 197 intangibles.
The amount of Section 197 intangible assets included in $250,000 purchase price.
b
To determine
Introduction: There are two categories of intangibles, Section 197 those acquired by a taxpayer as part of an acquisition of the business, these assets are amortized over the period of 15years and non-section 197 intangibles.
The amount of deduction D can make in 2019 tax return as Section 197 intangible amortization.
Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT