Assume that Cannon LLC acquires a competitor's assets on June 15^th 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 30^th of the second year, the customer list is sold for $10,000. Please round your amortization amounts to the nearest whole number. Round your allocation percentage to the nearest whole percentage (e.g., .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?

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The Answer of Assume that Cannon LLC acquires a competitor's assets on June 15^th 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 30^th of the second year, the customer list is sold for $10,000. Please round your amortization amounts to the nearest whole number. Round your allocation percentage to the nearest whole percentage (e.g., .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