On January 1, 2014, Ted Purchased a Small Software Company

question 24

Multiple Choice

On January 1, 2014, Ted purchased a small software company for $200,000. He paid $110,000 for the fixed assets of the company and $90,000 for goodwill. How much amortization may Ted deduct on his 2014 tax return for the purchased goodwill?

• A)$0
• B)$3,000
• C)$5,750
• D)$6,000
• E)$90,000

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Definitions:

Linguistic Relativity Hypothesis

A principle suggesting that the structure of a language influences its speakers' worldview or cognition, and thus people's perceptions are relative to their spoken language.

Behaviourist Theory

A psychological perspective focusing on observable behaviors and the ways they're learned through interactions with the environment.

Nativist Theory

The perspective that certain skills or abilities are "native" or hard-wired into the brain at birth, emphasizing the innate aspects of development.

Learning Theory

A framework that describes how knowledge, skills, attitudes, and behaviors are acquired, processed, and retained.