Assets are grouped into five classes under provisions of § 338.The method of establishing the value of Class V, or intangible, assets in the nature of goodwill or going concern value is
A)To determine the fair market value by appraisal on election date
B)To assign 20 percent of fair market value to intangible assets according to the 20 percent allocation rule
C)To assign what remains, after fair market value allocations to the four other classes, to the goodwill or going concern value
D)All of the above
E)None of the above

Question

Quizplus · Accepted Answer

The method of establishing the value of Class V assets (intangible assets) in the nature of goodwill or going concern value is to assign what remains, after fair market value allocations to the four other classes, to the goodwill or going concern value. This option is the most accurate and precise approach compared to the appraisal or 20 percent allocation rule.

Assets Are Grouped into Five Classes Under Provisions of §