Question: During the past two years, through extensive advertising and improved customer relations, Orange Corporation estimated that it had developed customer goodwill worth $500,000. In addition

During the past two years, through extensive advertising and improved customer relations, Orange Corporation estimated that it had developed customer goodwill worth $500,000. In addition in 2013 Orange Corporation purchased Yellow Corporation for $200,000. The purchase of Yellow Corporation contains $125,000 in fixed assets and $75,000 in goodwill. For the current year, determine the amount of goodwill Orange Corporation may amortize.

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