MrAnd MrsCarleton Founded Carleton Industries in 1993

question 61

Multiple Choice

Mr.and Mrs.Carleton founded Carleton Industries in 1993.This year,an independent appraiser placed a $25 million value on Carleton's business; $5 million of the value was attributable to unrecorded goodwill.Which of the following statements is true?

• A)Mr.and Mrs.Carleton are allowed to amortize the $5 million value of their business goodwill over 15 years.
• B)Mr.and Mrs.Carleton have a zero tax basis in their business goodwill.
• C)Mr.and Mrs.Carleton cannot amortize the $5 million value of their business goodwill because it is an intangible asset with an indeterminable life.
• D)None of the above is true.

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Definitions:

Shared Activities

Activities that are done together with others, often aiming to strengthen relationships and promote social connections.

Emotional Intimacy

Involves a close and profound emotional connection between individuals, allowing them to share feelings, thoughts, and experiences on a deep level.

Gay and Lesbian

Terms identifying individuals based on their sexual orientation, with gay typically referring to male homosexuality and lesbian to female homosexuality.

Dating Pool

The collective group of individuals who are considered potential romantic or sexual partners in a specific social context.