On January 2, 2018, Fran Acquires a Business from Chuck

question 59

Multiple Choice

On January 2, 2018, Fran acquires a business from Chuck. Among the assets purchased are the following intangibles: patent with a 7-year remaining life, a covenant not to compete for 10 years, and goodwill. Of the purchase price, $140,000 was paid for the patent and $60,000 for the covenant. The amount of the excess of the purchase price over the identifiable assets was $100,000. What is the amount of the amortization deduction for 2018?

• A) $10,667.
• B) $16,000.
• C) $20,000.
• D) $32,667.
• E) None of the above.

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Definitions:

Mortality Statistics

Data related to the frequency, causes, and distribution of deaths in a population.

Secondary Diagnosis

Diagnosis other than the primary diagnosis for other conditions that are also affecting the patient at the time of the visit.

Primary Diagnosis

The main medical diagnosis determined after evaluation, representing the most serious or significant condition that prompted the medical encounter.

ICD-10

The International Classification of Diseases, 10th Revision, a medical classification list by the World Health Organization, which codes for diseases, signs and symptoms, abnormal findings, and external causes of injury or diseases.