96. LLC has acquired various types of assets recently. Below is a list of assets acquired during 2011 and 2012: Boxer did not elect §179 expense or potential bonus depreciation in 2011, but would like to elect §179 expense for 2012 (assume that taxable income is sufficient). Calculate Boxer's maximum depreciation expense for 2012, rounded to the nearest whole number (ignore bonus depreciation for 2012). 97. Assume that Yuri acquires a competitor's assets on May 1st. The purchase price was $500,000. Of the amount, $325,000 is allocated to tangible assets and $175,000 is allocated to goodwill (a §197 intangible asset). What is Yuri's amortization expense for the current year, rounded to the nearest whole number? 98. Assume that Cannon LLC acquires a competitor's assets on June 15th of a 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 30th 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?
96. LLC has acquired various types of assets recently. Below is a list of assets acquired during 2011 and 2012: Boxer did not elect §179 expense or potential bonus depreciation in 2011, but would like to elect §179 expense for 2012 (assume that taxable income is sufficient). Calculate Boxer's maximum depreciation expense for 2012, rounded to the nearest whole number (ignore bonus depreciation for 2012). 97. Assume that Yuri acquires a competitor's assets on May 1st. The purchase price was $500,000. Of the amount, $325,000 is allocated to tangible assets and $175,000 is allocated to goodwill (a §197 intangible asset). What is Yuri's amortization expense for the current year, rounded to the nearest whole number? 98. Assume that Cannon LLC acquires a competitor's assets on June 15th of a 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 30th 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?
Test-Bank-Taxation-of-Business-Entities-4th-Edition-Spilker.docx