Acquired Goodwill Is Considered to Be a Section 197 Asset

question 32

True/False

Acquired goodwill is considered to be a Section 197 asset amortized over 15 years for tax purposes.

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Definitions:

Short-run

A period in economics during which some factors of production or inputs are fixed, unable to be changed to respond to market conditions.

Marginal Revenue Curve

A graphical representation that shows how much additional revenue a firm will make by selling one more unit of a product.

Perfectly Competitive Firm

A company operating in a market where there are many sellers and buyers, the product is homogeneous, and there are no barriers to entry or exit.

Downward Sloping

Describes a line or curve on a graph that shows a decrease in value as it moves from left to right.