On January 2,2015,Fran Acquires a Business from Chuck

question 65

Multiple Choice

On January 2,2015,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 2015?

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

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Definitions:

RSWho Function

A diagnostic tool in Rockwell Automation software used to browse and identify devices on a network.

Allen-Bradley Controllers

Industrial automation controllers, including PLCs and PACs, manufactured by Rockwell Automation, used for various automation tasks.

System Commissioning

The process of testing and validating a system's components and its entire operation to ensure it meets the specified requirements and is ready for use.

I/O Addressing

The method or scheme by which inputs and outputs are identified and accessed by a control system, allowing for data exchange with specific external devices or sensors.