Amortization deduction for the specific year of purchase

Assignment Help Accounting Basics

Reference no: EM13143697

Harold Stevenson purchased substantially all of the business assets of the Troy Creamery on January 17. As part of the purchase price he paid $200,000 for the patent on an ice cream making process. Harold also pays $20,000 for the business's goodwill and another $20,000 for the seller's covenant not to compete for the next five years. Compute Harold's amortization deduction for the year of purchase.

Reference no: EM13143697

Questions Cloud

Aftertax cash flow from the sale of the asset : Consider an asset that costs $780,000 and is depreciated straigh-line to zero over its eight-year tax life. The aset is to be used in a five-year project; at teh end of the project, the asset can be sold for $135,000. If the relevant tax rate is 3..

Riskiness of new operation versus old operation : Discuss the effect on profits if volume increases to 700,000 units under both the old and the new production environments. Comment on the riskiness of the new operation versus the old operation.

Probability distribution of random variable of sum of die : Roll a balanced 8-sided die and a balanced 6-sided die and add the spots on the up-faces. Call the sum X. What is the probability distribution of the random variable X?

How many grams of ch4 will dissolve : Methane has a Henry's Law constant (k)of 9.88 × 10-2 mol/(L·atm) when dissolved in benzene at 25°C. How many grams of CH4 will dissolve in 3.00 L of benzene if the partial pressure of CH4 is 1.48 atm?

Amortization deduction for the specific year of purchase : Harold also pays $20,000 for the business's goodwill and another $20,000 for the seller's covenant not to compete for the next five years. Compute Harold's amortization deduction for the year of purchase.

What is probability that carpet has no flaws : What is the probability that a carpet that is 8 metres by 10 metres contains no flaws? Use an appropriate Excel function and write down the formula shown in the formula bar.

How many cm3 of the solution are needed : The density of a sodium sulfate solution is 1.07 g/cm3. The solution is 8.00% sodium sulfate by mass. How many cm3 of the solution are needed to supply 4.28 g of sodium sulfate?

Overhead rates per direct-labor hour : Calculate the overhead rates per direct-labor hour for the Etching Department and the Finishing Department. Usethe direct method to allocate service department.

Expense account equals the amount : The long-term note payable bears interest at 12% per year. The unadjusted Interest Expense account equals the amount paid for the first 11 months of the 2009 fiscal year. The $230 accrued interest for June has not yet been paid or recorded.

User Account

All Pages