Hubert purchases Fran's jewelry store for $950,000. The identifiable assets of the business are as follows:

Hubert and Fran agree to assign $110,000 to a 7-year covenant not to compete. How should Hubert allocate the $950,000 purchase price to the assets?

Question

Hubert purchases Fran's jewelry store for $950,000. The identifiable assets of the business are as follows:
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Hubert and Fran agree to assign $110,000 to a 7-year covenant not to compete. How should Hubert allocate the $950,000 purchase price to the assets?

Quizplus · Accepted Answer

The Answer of Hubert purchases Fran's jewelry store for $950,000. The identifiable assets of the business are as follows:
​
Hubert and Fran agree to assign $110,000 to a 7-year covenant not to compete. How should Hubert allocate the $950,000 purchase price to the assets?

Hubert Purchases Fran's Jewelry Store for $950,000