Ben incorporated Miller Co.in 20x7,which then purchased a small business.The incorporation costs were $3,500,and the goodwill acquired from the small business equaled $50,000.What is the ending Class 14.1 UCC balance in 20x8 (assuming there are no other intangible assets in the company)? (Rounded to 0 decimal places)

Question

Quizplus · Accepted Answer

The Class 14.1 UCC balance is calculated by deducting 7% of the total intangible assets from the initial balance. The initial balance is $53,500 ($3,500 incorporation costs + $50,000 goodwill). Deducting 7% gives $53,500 - ($53,500 * 0.07) = $49,755. Rounding to 0 decimal places gives $46,776.

Ben Incorporated Miller Co