After several profitable years running her business, Ingrid decided to acquire the assets of a...
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Accounting
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 $306,000. Ingrid allocated $51,000 of the purchase price to goodwill. Ingrids business reports its taxable income on a calendar-year basis.
b. In lieu of the original facts, assume that Ingrid purchased only a phone list with a useful life of 5 years for $10,500. How much amortization expense on the phone list can Ingrid deduct in year 1, year 2, and year 3?
Phone List
Year 1 amortization expense
Year 2 amortization expense
Year 3 amortization expense
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