equipment and was reimbursed the set amount of $40,000. Identify the relevant issues for,John with respect to 179 and the computation of his taxable income Lo.4 Discuss how the limits on cost recovery apply to listed property 15. 16. LO.4 Discuss the tax consequences if the business use percentage of listed prop- 17. LO.7 Explain the amortization period of a s 197 intangible if the actual useful life is erty falls to 50% or lower after the year the property is placed in service. less than 15 years. Harold and Bart own 75% of the stock of Orange Motors. The other 25% of the stock is owned by Jeb. Orange Motors entered into an agreement with 18. (LO Harold and Bart to acquire all of their Orange stock. In addition, Harold and Bart signed a noncompete agreement with Orange Motons. Under the terms of the noncompete agreement, Orange will pay Harold and Bart $15,000 each per year for four years. Identify the relevant tax issues for Orange Motors. 19. LO.7 In May 2017, George began searching for a trade or business to acquire. In anticipation of finding a suitable aquisition, George hired an investment banker to evaluate three potential businesses. He also hired a law firm to begin drafting regula- tory approval documents for a target company. Eventually, George decided to purchase all of the' assets of Brash Corporation. Brash and George entered into an acquisition agree ment on December 1, 2017. Identify the relevant tax issues for George. 20. L0.8 Discuss how the cost of mineral rights enters into the calculation of cost depletion