How much amortization expense on goodwill can ingrid deduct

Reference no: EM13906429

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 $300,000. Ingrid allocated $50,000 of the purchase price to goodwill. Ingrid's business reports its taxable income on a calendar-year basis.

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

b) In lieu of the original facts, assume that Ingrid purchased only a phone list with a useful life of 5 years for $10,000. How much amortization expense on the phone list can Ingrid deduct in year 1, year 2, and year 3?

Reference no: EM13906429

Questions Cloud

Accounting practices and principles are at the heart : Accounting practices and principles are at the heart of a manager's role. To understand the needs of operating a department, it is necessary to understand the importance of accounting in identifying operational needs.Review the University of Phoenix ..

Designs and manufactures high end fashion clothing : DY Company, based in J Country, designs and manufactures high end fashion clothing, which it sells through its international chain of outlets. The company's customers are willing to pay highprices for DY branded fashion items based on their quality a..

Fzp pharmaceutical company has a published mission statement : FZP Pharmaceutical Company has a published mission statement which refers to its commitment to act in a socially responsible manner. At a recent Board meeting the ChiefExecutive presented a number of proposals outlining what she thinks the company sh..

What level should it set these charges : Assuming the phone company has to charge the same monthly rental fee and unit price to all its customers, at what level should it set these charges?

How much amortization expense on goodwill can ingrid deduct : How much amortization expense on the goodwill can Ingrid deduct in year 1, year 2, and year 3? In lieu of the original facts, assume that Ingrid purchased only a phone list with a useful life of 5 years for $10,000.

What pauls allowable macrs depreciation expense for property : What is Paul's allowable MACRS depreciation expense for the property? What is Paul's allowable alternative minimum tax (AMT) depreciation expense for the property?

Match id and game number : Calculate the total raw score (add the scores) for each bowler. Display the bowler’s ID and total raw score. Rename the total raw score as Total Pins. Display match ID and the highest raw score for each match. Only display the results for bowlers wh..

The pst appreciates relative to the eur : In the following problem, assume that the UK currency is the pound sterling (PST) and the currency in the rest of the Europe is the euro (EUR).Suppose that the PST appreciates relative to the EUR. For the following parts, you will not receive any cre..

Summarize the creation of federal labor policy : Summarize what you learned from our reading material. What did you find most interesting? Why? How will it help you as a professional. Support your thoughts with material from our text and outside sources.

User Account

All Pages