$1$ Which of the following assets are subject to ei$-$ther amortization, depreciation, or cost recov$-$ery? Explain.

a$.$ An automobile held for personal use.

b$.$ Excess amounts paid in a business combina$-$tion that are attributable to goodwill.

c$.$ Excess amounts paid in a business combina$-$tion that are attributable to customer lists

that have a limited useful life.

d$.$ A patent created internally which has a useful

life of $17$ years.

e$.$ Land held for investment purposes.

f$.$ A covenant not to compete which is entered

into by the buyer and seller of a business.

$2$ Rick is a sole proprietor who has a small busi$-$ness currently operating at a loss. He would like

to discontinue depreciating the fixed assets of

the business for the next few years and to carry

the deductions over to a future period. What

tax consequences would result if Rick imple$-$ments the plan to discontinue depreciation and

then sells some of the depreciable assets several

years later?