If the Total Amount Paid for a Business Is Greater

question 6

Multiple Choice

If the total amount paid for a business is greater than the sum of the net fair market values of the assets of the business, the excess

• A)Is currently deductible.
• B)May be amortized over the period of 15 years.
• C)May be characterized as goodwill and amortized over a period of not more than 60 months.
• D)May be allocated to a noncompetition covenant and amortized over the period of time of the covenant.
• E)Is never deductible.

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