Chapter 8, Problem 14P

a

To determine

Introduction:There are two categories of intangibles, Section 197 those acquired by the taxpayer as part of an acquisition of a business, these assets are amortized over the period of 15years and non-section 197 intangibles.

The amount of Section 197 intangible assets included in $250,000 purchase price.

b

To determine

Introduction: There are two categories of intangibles, Section 197 those acquired by a taxpayer as part of an acquisition of the business, these assets are amortized over the period of 15years and non-section 197 intangibles.

The amount of deduction D can make in 2019 tax return as Section 197 intangible amortization.