Amounts Paid in Connection with the Acquisition of a Business

question 54

True/False

Amounts paid in connection with the acquisition of a business which represent a covenant not to compete are amortizable over the covenant's remaining life.

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Definitions:

Incontestability Clause

A part of an insurance contract that precludes an insurance company from challenging statements in an insurance application after a certain period of time.

State Mandated

Requirements or actions imposed by state governments that must be complied with by individuals or entities within that state.

Premium

An insurance payment.

Payment Exchange

A system or platform that facilitates the transfer of money between parties, enabling the settlement of transactions electronically.