Question

Derek purchases a small business from Art on September 1, 2014. He paid the following amounts for the business:
Fixed assets............ $220,000
Goodwill.............. 40,000
Covenant not to compete....... 45,000
Total............... $305,000
a. How much of the $305,000 purchase price is for Section 197 intangible assets?
$ _______________
b. What amount can Derek deduct on his 2014 tax return as Section 197 intangible amortization?
$ _______________


$1.99
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  • CreatedJuly 16, 2015
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