Jorge Purchased a Copyright for Use in His Business in the Current

question 55

Multiple Choice

Jorge purchased a copyright for use in his business in the current year. The purchase occurred on July 15 ^th and the purchase price was $66,000. If the copyright has a remaining life of 75 months, what is the total amortization amount Jorge may deduct during the current year? (Assume this is not an asset acquisition to which §197 applies.)

• A) $0
• B) $4,840
• C) $5,280
• D) $10,560
• E) None of the choices are correct.

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Definitions:

Deregulation

The act of eliminating governmental controls and rules in a sector to promote increased competition and efficiency.

Regulation

Rules or directives made and maintained by an authority to control or manage activities, often within industry sectors, for public good.

Allocative Efficiency

A state of the economy where the distribution of resources among different uses is optimal, with no one able to be made better off without making someone else worse off.

Marginal Benefits

The bonus satisfaction or utility acquired from consuming an additional unit of a product or service.