Assume that Cannon LLC acquires a competitor's assets on June 15ᵗʰ of a prior year.The purchase price was $450,000.Of the amount,$196,200 is allocated to tangible assets and $253,800 is allocated to three §197 intangible assets: $153,000 to goodwill,$50,400 to a customer list with an expected life of 8 years,and $50,400 to a 3 year non-compete agreement.On May 30ᵗʰ of the second year,the customer list is sold for $10,000.(Round your amortization and final answer to the nearest whole number.Round your allocation percentage to the nearest whole percentage e.g.,0.1234 as 12%.)
1) What is Cannon's amortization expense for the second year?
2) What is the basis of the intangibles at the end of the second year?

Question

Quizplus · Accepted Answer

The Answer of Assume that Cannon LLC acquires a competitor's assets on June 15ᵗʰ of a prior year.The purchase price was $450,000.Of the amount,$196,200 is allocated to tangible assets and $253,800 is allocated to three §197 intangible assets: $153,000 to goodwill,$50,400 to a customer list with an expected life of 8 years,and $50,400 to a 3 year non-compete agreement.On May 30ᵗʰ of the second year,the customer list is sold for $10,000.(Round your amortization and final answer to the nearest whole number.Round your allocation percentage to the nearest whole percentage e.g.,0.1234 as 12%.)
1) What is Cannon's amortization expense for the second year?
2) What is the basis of the intangibles at the end of the second year?

Assume That Cannon LLC Acquires a Competitor's Assets on June