Scott purchases a small business from Lew on July 1, 2019. He paid the following amounts for the business: $$\begin{array} { l r }
\text { Land } & \$ 100,000 \
\text { Commercial building } & 200,000 \
\text { Furniture and equipment } & 78,500 \
\text { Going-concern value } & 50,000 \
\text { Workforce in place } & 29,500 \
\text { Total } & \$ 458,000
\end{array}$$
a.How much of the $458,000 purchase price is for Section 197 intangible assets?
b.What amount can Scott deduct on his 2019 tax return as Section 197 intangible amortization?

Question

Scott purchases a small business from Lew on July 1, 2019. He paid the following amounts for the business: $$\begin{array} { l r } 
\text { Land } & \$ 100,000 \
\text { Commercial building } & 200,000 \
\text { Furniture and equipment } & 78,500 \
\text { Going-concern value } & 50,000 \
\text { Workforce in place } & 29,500 \
\text { Total } & \$ 458,000
\end{array}$$ 
a.How much of the $458,000 purchase price is for Section 197 intangible assets?
b.What amount can Scott deduct on his 2019 tax return as Section 197 intangible amortization?

Quizplus · Accepted Answer

The Answer of Scott purchases a small business from Lew on July 1, 2019. He paid the following amounts for the business: $$\begin{array} { l r } 
\text { Land } & \$ 100,000 \
\text { Commercial building } & 200,000 \
\text { Furniture and equipment } & 78,500 \
\text { Going-concern value } & 50,000 \
\text { Workforce in place } & 29,500 \
\text { Total } & \$ 458,000
\end{array}$$ 
a.How much of the $458,000 purchase price is for Section 197 intangible assets?
b.What amount can Scott deduct on his 2019 tax return as Section 197 intangible amortization?

Scott Purchases a Small Business from Lew on July 1