On April 2, Reid Inc Which of the Following Statements Is False?
A) Reid Must

On April 2, Reid Inc., a calendar year taxpayer, paid a $750,000 lump-sum price to purchase a business. The appraised FMVs of the balance sheet assets were: $\begin{array}{llr} \text { Accounts receivable} &\$38,000\\ \text { Inventory} &415,000\\ \text { Fixtures and equipment } &147,000\\&\$600,000\end{array}$

Which of the following statements is false?

A) Reid must capitalize $150,000 of the cost as purchased goodwill.
B) Reid may amortize the $150,000 cost for both book and tax purposes.
C) Reid's amortization deduction for the current year is $7,500.
D) None of these choices are false.