On June 1,2015,Red Corporation Purchased an Existing Business

question 58

Multiple Choice

On June 1,2015,Red Corporation purchased an existing business.With respect to the acquired assets of the business,Red allocated $300,000 of the purchase price to a patent.The patent will expire in 20 years.Determine the total amount that Red may amortize for 2015 for the patent.

• A)$0
• B)$1,667
• C)$11,667
• D)$35,000
• E)None of the above

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Definitions:

Flocks

Groups of birds gathered together, typically for the purposes of migration or social interaction.

Indigenous Peoples

Ethnic groups who are the original inhabitants of a region, before the colonization or annexation of their territory by other populations, and who maintain traditions or aspects of an early culture associated with that region.

Crops Grown

Plants that are cultivated on a large scale for food, fuel, fiber, or feed.

Immature Sheep

Refers to young sheep, also known as lambs, that have not yet reached full maturity or adulthood.