Devon purchased a small business from Art on August 30, 2023, and paid the following amounts for the business: Line Item Description Amount Fixed assets $303,400 Goodwill 60,680 Covenant not to compete 75,850 Total $439,930 b. What amount can Devon deduct on his 2023 tax return as Section 197 intangible amortization? If required, round the final answer to the nearest dollar. Use months, not days, in your computations.
Devon purchased a small business from Art on August 30, 2023, and paid the following amounts for the business: Line Item Description Amount Fixed assets $303,400 Goodwill 60,680 Covenant not to compete 75,850 Total $439,930 b. What amount can Devon deduct on his 2023 tax return as Section 197 intangible amortization? If required, round the final answer to the nearest dollar. Use months, not days, in your computations.
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 51P
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Devon purchased a small business from Art on August 30, 2023, and paid the following amounts for the business:
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b. What amount can Devon deduct on his 2023 tax return as Section 197 intangible amortization?
If required, round the final answer to the nearest dollar. Use months, not days, in your computations.
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