Hubert Purchases Fran's Jewelry Store for $950,000

question 39

Essay

Hubert purchases Fran's jewelry store for $950,000.The identifiable assets of the business are as follows:
Hubert and Fran agree to assign $110,000 to a 7-year covenant not to compete.How should Hubert allocate the $950,000 purchase price to the assets?

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Definitions:

Sponges

Simple aquatic animals of the phylum Porifera, characterized by a porous body and a rudimentary structure, feeding by filtering water through their bodies.

General Characteristics

The basic, defining traits or features shared by members of a group, species, or category, providing a broad overview.

Animals

Multicellular, eukaryotic organisms in the kingdom Animalia that are characterized by their ability to move voluntarily, consume organic materials, and have sensory and nervous systems.

Lophotrochozoa

A clade within the animal kingdom that includes organisms with a distinctive developmental stage or feeding structure, such as mollusks, annelids, and brachiopods.