On June 1,2016,Red Corporation Purchased an Existing Business

question 33

Multiple Choice

On June 1,2016,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 2016 for the patent.

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

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Definitions:

Social Factors

External societal influences that affect an individual's behavior, attitudes, and life chances.

Incentive

A factor, often a reward or punishment, that motivates behavior or increases the likelihood of a certain response.

Biological Needs

Biological needs are the essential requirements that organisms must meet to maintain life, such as food, water, air, and shelter.

Social Needs

The human requirements for companionship, belonging, inclusion, and being part of a community.