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Annie, Inc. acquires a competitor's assets on May 1. The purchase price is $150,000. Of that amount, $125,000 is allocated to tangible assets and $25,000
Annie, Inc. acquires a competitor's assets on May 1. The purchase price is $150,000. Of that amount, $125,000 is allocated to tangible assets and $25,000 is, allocated to goodwill (a 197 intangible asset). What is Annie's tax amortization expense in year one (the year of acquisition) and year two? Select one: O A. Year 1- $7,500; Year 2 - $10,000 O B. Year 1-$25,000; Year 2 - $0 OC. Year 1- $1,250; Year 2 - $1,667 O D. Year 1-$1,111; Year 2 - $1,667
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