On January 1, 2012, Ted purchased a small software company for $200,000. He paid $95,000 for the

Question:

On January 1, 2012, Ted purchased a small software company for $200,000. He paid $95,000 for the fixed assets of the company and $105,000 for goodwill. How much amortization may Ted deduct on his 2012 tax return for the purchased goodwill? Select one:
a. $0
b. $21,000
c. $105,000
d. $7,000
e. $15,000