Derek purchases a small business from Art on June 30, 2019. He paid the following amounts for
Question:
Derek purchases a small business from Art on June 30, 2019. He paid the following amounts for the business:
Fixed assets...........................$180,000
Goodwill.....................................40,000
Covenant not to compete........30,000
Total.......................................$250,000
a. How much of the $250,000 purchase price is for Section 197 intangible assets?
b. What amount can Derek deduct on his 2019 tax return as Section 197 intangible amortization?
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a Since the 250000 purchase price the intangible assets for sec 197 Goodwill C...View the full answer
Related Book For 
Income Tax Fundamentals 2020
ISBN: 9780357108239
38th Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven Gill
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