Intangible Assets (LO. 10) On April 18, 2026, Petros buys all the assets of Brigid's Muffler Shop, Included in the purchase price of $303,000 is a payment of $19,200 to Brigid not to open a competing shop in the state for a period of 5 years. Brigid's assets at the date of sale are as foliowe: Adjusted basis Asset Fair Market Value Inventory 50,000 $11,600 Equipment 3,600 30,500 Building 112,500 79,600 800 Patent 12,600 Land 5,400 10,200 The pateit is on a special muffler that Brigid developed and patented 5 years ago. Petron would like to know the maximum amount of the deduction ho will be stowed on the purchase of Brigid'y assets for 2020 Refer to the MACRS Depreciation Tables to answer the following question. Notes do not round any division. Round other computations to the nearest whole dollar. Assume the equipment has a MACRS recovery period of 7 years and that bonus depreciation is taken in the year of acquisition. The maximum amount of the deduction Petros wil be allowed on the purchase of Brigid's assets for 2020 $ 38,500 x OM Drew Next Table MACRS Depreciation for Property Other Than Real Estate Applicable convention: mid-year (applicable methods: 200% or 150% declining balance, switching to straight-line And the recovery period is If the recovery 3 Years 5 Years 7 Years 10 Years 15 Years 20 Years year is The depreciation rate is 1 33.33 20.00 14.29 10.00 5.00 3.750 2 44.45 32.00 24.49 18.00 9.50 7.219 3 14.81 19.20 17.49 14.40 8.55 6.677 4 7.41 11.52 12.49 11.52 7.70 6.177 5 11.52 8.93 9.22 6.93 5.713 6 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55 5.90 4.888 8 4.46 6.55 5.90 9 4.522 6.56 5.91 10 4.462 6.55 5.90 11 4.461 3.28 5.91 12 4.462 5.90 4.461 13 5.91 14 4.462 5.90 15 4.461 5.91 4.462 16 2.95 17 4,461 18 4.462 19 4.461 4.462 30 Intangible Assets (LO. 10) On April 18, 2026, Petros buys all the assets of Brigid's Muffler Shop, Included in the purchase price of $303,000 is a payment of $19,200 to Brigid not to open a competing shop in the state for a period of 5 years. Brigid's assets at the date of sale are as foliowe: Adjusted basis Asset Fair Market Value Inventory 50,000 $11,600 Equipment 3,600 30,500 Building 112,500 79,600 800 Patent 12,600 Land 5,400 10,200 The pateit is on a special muffler that Brigid developed and patented 5 years ago. Petron would like to know the maximum amount of the deduction ho will be stowed on the purchase of Brigid'y assets for 2020 Refer to the MACRS Depreciation Tables to answer the following question. Notes do not round any division. Round other computations to the nearest whole dollar. Assume the equipment has a MACRS recovery period of 7 years and that bonus depreciation is taken in the year of acquisition. The maximum amount of the deduction Petros wil be allowed on the purchase of Brigid's assets for 2020 $ 38,500 x OM Drew Next Table MACRS Depreciation for Property Other Than Real Estate Applicable convention: mid-year (applicable methods: 200% or 150% declining balance, switching to straight-line And the recovery period is If the recovery 3 Years 5 Years 7 Years 10 Years 15 Years 20 Years year is The depreciation rate is 1 33.33 20.00 14.29 10.00 5.00 3.750 2 44.45 32.00 24.49 18.00 9.50 7.219 3 14.81 19.20 17.49 14.40 8.55 6.677 4 7.41 11.52 12.49 11.52 7.70 6.177 5 11.52 8.93 9.22 6.93 5.713 6 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55 5.90 4.888 8 4.46 6.55 5.90 9 4.522 6.56 5.91 10 4.462 6.55 5.90 11 4.461 3.28 5.91 12 4.462 5.90 4.461 13 5.91 14 4.462 5.90 15 4.461 5.91 4.462 16 2.95 17 4,461 18 4.462 19 4.461 4.462 30
