On January 2,2011,Fran Acquires a Business from Chuck

question 53

Multiple Choice

On January 2,2011,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. 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 2011?

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

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Definitions:

Disagreements

Occurrences of differing opinions or conflicts between individuals or groups, often leading to debates or disputes.

Information Technology

This is the use of computers, storage, networking, and other physical devices, infrastructure, and processes to create, process, store, secure, and exchange all forms of electronic data.

Virtual

Pertains to something that is not physically existing but made by software to appear to do so, often used in the context of virtual reality or virtual meetings.

Empowerment

Giving employees authority and responsibility to make decisions about their work.