Manu Bought Franklin's Ownership Interest in Antoine Company on July

question 101

Multiple Choice

Manu bought Franklin's ownership interest in Antoine Company on July 1 of the current year. Manu pays Franklin $30,000 cash not to compete or interfere with Manu's business activities over the next three years. How much cost recovery can Manu claim in the current year because of the covenant not to compete?

• A)$1,000
• B)$2,000
• C)$3,000
• D)$6,000
• E)$30,000