On October 1, 2019, Priscilla purchased a business. Of the purchase price, $60,000 is allocated to...

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On October 1, 2019, Priscilla purchased a business. Of the purchase price, $60,000 is allocated to...

On October 1, 2019, Priscilla purchased a business. Of the purchase price, $60,000 is allocated to a patent and $375,000 to goodwill.

If required, round your answer to the nearest dollar.

The 2019 § 197 amortization deduction is $

business accounting

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Answer 1

Answer #1

Patent	$1,000
($60,000/15 years x 3/12)

Goodwill	$6,250
($375,000/15 years × 3/12)
Total	$7,250

The buyer is allowed to amortize a section 197 intangible over 15 years.

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Answer 2

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