Question

After several profitable years running her business, BLANK decided to acquire the assets of a small competing business. On May 1 of year 1, BLANK acquired the competing business for $372,000. BLANK allocated $62,000 of the purchase price to goodwill. BLANK’s business reports its taxable income on a calendar-year basis. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) **A is correct, but I cannot figure out B**

a. How much amortization expense on the goodwill can BLANK deduct in year 1, year 2, and year 3?

YEAR 1= 2756

YEAR 2= 4133

YEAR 3= 4133

In lieu of the original facts, assume that BLANK purchased only a phone list with a useful life of 5 years for $16,000. How much amortization expense on the phone list can BLANK deduct in year 1, year 2, and year 3?

YEAR ONE AMORTIZATION EXPENSE=

YEAR TWO AMORTIZATION EXPENSE=

YEAR THREE AMORTIZATION EXPENSE=