On January 2,2010,Fran Acquires a Business from Chuck

question 82

Multiple Choice

On January 2,2010,Fran acquires a business from Chuck.Among the assets purchased are the following intangibles: patent with a 9-year remaining life,a covenant not to compete for 12 years,and goodwill. Of the purchase price,$150,000 was paid for the patent and $48,000 for the covenant.The amount of the excess of the purchase price over the identifiable assets was $87,000.What is the amount of the amortization deduction for 2010?

• A)$13,200.
• B)$15,800.
• C)$19,000.
• D)$26,467.
• E)None of the above.

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Definitions:

Fecundity Rate

The potential reproductive capacity of an individual or population, often measured by the number of children women could have.

Social Movements

Collective, organized efforts aimed at promoting or resisting change in society, focusing on specific political or social issues to achieve their objectives through various forms of activism.

Spontaneity

The quality of being impulsive or acting without premeditation.

Everyday Organizations

Pertains to the common, routine structures and institutions that govern daily life and interactions, typically unnoticed but foundational to societal functioning.