Question

On October 1, 2019, Priscilla purchased a business. Of the purchase price, $92,000 is allocated to a patent and $552,000 to goodwill. If required, round your intermediate values to nearest dollar and use in subsequent computations. Calculate Priscilla’s 2019 § 197 amortization deduction. $

Answer 1

Answer:

$10,730

Explanation:

1. Patent: $92,000/15 years = $6,133

$6,133 × 3/12 = $1,533

2.Goodwill: $552,000/15 years= $36,800

$36,800 × 3/12 = $9,200

Total: $1,533 + $9,200= $10,733

Approximately $10,730