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Carl receives only the name of the business

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Perry develops a successful advertising business that he subsequently sells to his competitor, Carl, for $108,000. Perry retires in the same town where he has always lived and done business. Carl insists that Perry sign a covenant not to compete. The advertising business has no tangible assets; Carl receives only the name of the business, the client lists and whatever going-concern value there is.

How should Carl treat the $108,000 cost of the advertising business he purchased?

Reference no: EM132419927

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