the purchase for tax purpo 6. Derek purchases a small business from Art on August 30, 2022. He paid the following amounts for the business: Fixed assets Goodwill Covenant not to compete Total $170,000 50,000 20,000 $240,000 a. How much of the $240,000 purchase price is for Section 197 intangible assets? b. What amount can Derek deduct on his 2022 tax return as Section 197 intangible amortization?
the purchase for tax purpo 6. Derek purchases a small business from Art on August 30, 2022. He paid the following amounts for the business: Fixed assets Goodwill Covenant not to compete Total $170,000 50,000 20,000 $240,000 a. How much of the $240,000 purchase price is for Section 197 intangible assets? b. What amount can Derek deduct on his 2022 tax return as Section 197 intangible amortization?
Chapter8: Depreciation And Sale Of Business Property
Section: Chapter Questions
Problem 1MCQ: Alice purchases a rental house on August 22,2019, for a cost of $174,000. Of this amount, $100,000...
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Transcribed Image Text:the purchase for tax purpo
6. Derek purchases a small business from Art on August 30, 2022. He paid the following
amounts for the business:
Fixed assets
Goodwill
Covenant not to compete
Total
$170,000
50,000
20,000
$240,000
a. How much of the $240,000 purchase price is for Section 197 intangible assets?
b. What amount can Derek deduct on his 2022 tax return as Section 197 intangible
amortization?
Annie develops a successful tax practice. She sells the practice to her friend Carol
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT