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.

---

Definitions:

Price

The sum of currency anticipated, required, or given in transaction for something.

Demand

The desire and ability of consumers to purchase goods and services at various prices.

Law of Demand

States that, all other factors being equal, as the price of a good increases, demand for that good decreases, and vice versa.

Quantity Demanded

The amount of a good or service that consumers are willing and able to purchase at a specific price.