On January 1, 2015, Ted Purchased a Small Software Company

question 80

Multiple Choice

On January 1, 2015, Ted purchased a small software company for $200,000. He paid $120,000 for the fixed assets of the company and $80,000 for goodwill. How much amortization may Ted deduct on his 2015 tax return for the purchased goodwill?

• A)$0
• B)$5,333
• C)$5,750
• D)$6,000
• E)$90,000

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Definitions:

Immediately

Without delay; happening right at the moment or very soon after.

Bid

An acronym in medical prescribing that stands for "bis in die" which means "twice a day".

Tid

An acronym in medical prescriptions standing for "ter in die," which means three times a day.

Prn

An abbreviation for "pro re nata," a Latin phrase meaning “as the situation demands” used in healthcare to instruct that medication should be taken as needed.