Which of the following items acquired as part of an acquisition of a business is not...
which of the following items acquired as part of an acquisition of a business is not Section 197 intangible property QUESTION 12 A taxpayer places in service $55,000 of 5-year property on August 16, and $45.000 of 7-year property on December 2. Assuming the taxpayer elects not to take Section 179 expense of bonus depreciation on ether property, which of the following statements is correct? The taxpayer uses the half-year convention to depreciate the 5-year property, but uses the mid-quarter...
Section 197 (intangible) property acquired as part of an acquisition of a business is amortized over: A) 15 years B) the remainder of the property's useful life C) the lesser of a. and b. D) the greater of a and b E) none of the above
which of the following best describes the accounting for goodwill acquired in business acquisition? a. Goodwill can be recorded by a company when it can demonstrate that the company has generated excess market value directly attributable to its strong reputation b. Goodwill is recorded as an asset when the purchaser of a business believes that the purchased business has a good reputation among its customers c. Goodwill is recorded as an asset when the purchaser of a business pays less...
Which one of the following items increases the amount of goodwill recognized in an acquisition? A. Payments offered to employees of the acquired company that are based on their future performance B. Consulting fees paid to Goldman Sachs C. Registration fees the acquiring company pays to issue new stock in an acquisition D. An earnout added to an acquisition agreement to motivate the acquired company’s shareholders to sell
Which intangible asset is recorded only as part of the acquisition of another company? A. Copyright B. Goodwill C. Franchise D. Patent Click to select your answer.
Which intangible asset is recorded only as part of the acquisition of another company? O A Copyright O B. Goodwill OC. Franchise OD. Patent Click to select your answer.
For which of the following business properties may depreciation deductions be claimed? A “Section 197 intangibles” B Land C Mineral deposits D Property converted from personal use to business use
19. Which of the following is not important in the business acquisition process? a. companies should try to limit the unwanted departure of managers after the acquisition. b. an integration plan should be implemented quickly c. the hubris hypothesis must be maintained d. a proper assessment of the company to be acquired must be made e. all of the above are important in the process of acquiring a company.
Intangible Assets and Goodwill: Amortization and Impairment In early 2018, Bowen Company acquired a new business unit in a merger. Allocation of the acquisition cost resulted in fair values assigned as follows: Intangible Asset Fair Value Estimated Value Customer lists $500,000 5 years Developed technology 800,000 10 years Internet domain name 1,300,000 Indefinite Goodwill* 6,200,000 Indefinite * The goodwill is assigned entirely to the acquired business unit. Impairment reviews at the end of 2018 and 2019 did not identify any...
In early 2018, Bowen Company acquired a new business unit in a merger. Allocation of the acquisition cost resulted in fair values assigned as follows: Intangible Asset Fair Value Estimated Value Customer lists $500,000 5 years Developed technology 800,000 10 years Internet domain name 1,300,000 Indefinite Goodwill* 6,200,000 Indefinite * The goodwill is assigned entirely to the acquired business unit. Impairment reviews at the end of 2018 and 2019 did not identify any impairment losses. After the business suffered a...