I:10-23 In the current year, Coastal Corporation acquires all of the net assets of Acorn Corporation for $2,000,000. The purchase agreement allocated the following amounts to the individual assets and liabilities:

Land and building $1,400,000 Accounts receivable 200,000 Inventory 300,000 Goodwill 400,000 Patents (remaining useful life of ten years) 100,000 Covenant not to compete 200,000 Liabilities (600,000)

Total $2,000,000 What tax issues should Coastal Corporation consider relative to the asset acquisitions?