On January 2,2016,Fran Acquires a Business from Chuck

question 81

Multiple Choice

On January 2,2016,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.
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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 2016?

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

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Definitions:

Network Security

Measures taken to protect the integrity, confidentiality, and accessibility of computer networks and data from unauthorized access, attacks, or misuse.

Internet Gambling

The act of wagering on casino or sports-type games over the internet, often subject to legal restrictions.

Gaming Websites

Online platforms that host a variety of games, which can range from simple puzzles to complex virtual worlds, for the purpose of entertainment.

Cyberdeviance

Behaviors that deviate from the norm and occur in online or digital environments, including cyberbullying and internet fraud.