Problem 10-71 (LO 10-4) (Algo)

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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 $414,000. Ingrid allocated $69,000 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.)

Problem 10-71 Part a (Algo)

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

Problem 10-71 Part b (Algo)

b. In lieu of the original facts, assume that Ingrid purchased only a phone list with a useful life of 5 years for $19,500. How much amortization expense on the phone list can Ingrid deduct in year 1, year 2, and year 3?

Problem 10-71 Part a (Algo) a. How much amortization expense on the goodwill can Ingrid deduct in year 1, year 2, and year 3? Deductible amortization expense Year 1 Year 2 Year 3 Problem 10-71 Part b (Algo) b. In lieu of the original facts, assume that Ingrid purchased only a phone list with a useful life of 5 years for $19,500. 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