Question
CH.2 Q.25 After several profitable years running her business, Ingrid decided to acquire the assets of a small competing business. On May 1 of year
CH.2 Q.25
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 $402,000. Ingrid allocated $67,000 of the purchase price to goodwill. Ingrids business reports its taxable income on a calendar-year basis. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
b. In lieu of the original facts, assume that Ingrid purchased only a phone list with a useful life of 5 years for $18,500. How much amortization expense on the phone list can Ingrid deduct in year 1, year 2, and year 3?
Phone List Year 1 amortization expense Year 2 amortization expense Year 3 amortization expense $ 411 X
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