Business, 22.11.2019 06:31 20jessicar598

On october 1 of the current year, lee corporation enters negotiations with kay corporation to acquire a patent. the patent has 10 years remaining on its legal life.
a. if lee corporation purchases the patent for $36,000, how much amortization expense may lee corporation deduct in the current year?
b. assume that lee corporation purchases all of the assets of kay corporation for $510,000. all of the identifiable assets of kay corporation have a fair market value of $420,000, including the patent, which has a fair market value of $36,000. also, a covenant not to compete for 3 years costing $72,000 is included in the purchase agreement. how much amortization expense may lee corporation deduct in the current year?

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On october 1 of the current year, lee corporation enters negotiations with kay corporation to acquir...

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