Assume that Bethany acquires a competitor's assets on March 31st. The purchase price was $150,000. Of that amount, $125,000 is allocated to tangible assets and $25,000 is allocated to goodwill (a §197 intangible asset). What is Bethany's amortization expense for the current year, rounded to the nearest whole number?
A) $0
B) $1,250
C) $1,319
D) $1,389
E) None of these

Question

Quizplus · Accepted Answer

The Answer of Assume that Bethany acquires a competitor's assets on March 31st. The purchase price was $150,000. Of that amount, $125,000 is allocated to tangible assets and $25,000 is allocated to goodwill (a §197 intangible asset). What is Bethany's amortization expense for the current year, rounded to the nearest whole number?
A) $0
B) $1,250
C) $1,319
D) $1,389
E) None of these

Assume That Bethany Acquires a Competitor's Assets on March 31st