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:

Postoperatively

Referring to the period or conditions after a surgical operation.

Participatory

Involving or allowing for the active participation or involvement of all members or parties concerned.

Wound

An injury to the body, usually involving a break in the skin or an internal injury.

Disease Prevention

Efforts or measures taken to avoid or reduce the incidence and severity of diseases and health conditions.