After several profitable years running her business, Ingrid decided to acquire the assets of a small competing business. On May 1 of year 1, Ingrid acquired the competing business for $372,000. Ingrid allocated $62,000 of the purchase price to goodwill. Ingrids business reports its taxable income on a calendar-year basis.

a. how much amortization expense on the goodwill can Ingrid deduct in year 1, year 2, and year 3?

year 1:

year 2;

year 3:

b. in lieu of the original facts, assume that Ingrid purchased only a phone list with a useful life of 5 years for $16,000. How much amortization expense on the phone list can Ingrid deduct in year 1, year 2, and year 3?

year 1:

year 2;

year 3: