Solution-How would vickis assets be recorded for tax

How would vickis assets be recorded for tax purposes

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Reference no: EM13509293

Amortization of Intangibles. On January 1 of the current year, Palm Corporation purchases the net assets of Vicki's unincorporated business for $600,000. The tangible net assets have a $300,00 book value and a $400,000 FMV. The purchase agreement states that Vicki will not compete with Palm Corporation by starting a new business in the same area for A PERIOD OF FIVE YEARS. The stated consideration received by Vicki for the covenant not to compete is $50,000. Other intangibles assets included in the purchase agreement are as follows:

Goodwill: $70,000

Patents (12-year remaining legal life):$30,000

Customer list:$50,000

How would Vicki's assets be recorded for tax purposes by Palm Corporation?
What is the amortization amount for each intangible asset in the current year?

Reference no: EM13509293

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How would vickis assets be recorded for tax purposes

Reference no: EM13509293

Reference no: EM13509293

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