In 2020, Gain Inc. purchased all of the assets of Cookie’s business. As part of this purchase, Gain Inc. purchased the following intangible assets: • $ 270,000 for a 5-year agreement in which Cookie cannot compete with Gain. • $ 720,000 for Goodwill. Gain plans to be in business for 30 years. How much will Gain Inc. deduct as amortization in 2020 if they commence business on 4/15/20? a. $58,500 b. $49,500 c. $46,750 d. $40,500 e. $31,500

In 2020, Gain Inc. purchased all of the assets of Cookie’s business. As part of this purchase, Gain Inc. purchased the following intangible assets: • $ 270,000 for a 5-year agreement in which Cookie cannot compete with Gain. • $ 720,000 for Goodwill. Gain plans to be in business for 30 years. How much will Gain Inc. deduct as amortization in 2020 if they commence business on 4/15/20? a. $58,500 b. $49,500 c. $46,750 d. $40,500 e. $31,500

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 11MCQ

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