Daytona Corporation, a manufacturing corporation, acquires the following business assets in the current year Furniture Plumbing fixtures Land Goodwill and a trademark acquired in the acquisition of a business Automobile Heavy truck Machinery Building used in manufacturing activities a Which of the ...

a Subject to Subject to Sec 197 b MACRS Depreciation Amortization Rec ...

Daytona Corporation, a manufacturing corporation, acquires the following business assets in the current year: Furniture

Question:

Daytona Corporation, a manufacturing corporation, acquires the following business assets in the current year:
• Furniture
• Plumbing fixtures
• Land
• and a trademark acquired in the acquisition of a business
• Automobile
• Heavy truck
• Machinery
• Building used in manufacturing activities
a. Which of the assets above are eligible for depreciation under the MACRS rules or amortization under Sec. 197?
b. What recovery period should be used for each of the assets listed above that come under the MACRS rules or under Sec. 197?
Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...