35. On January 1, 2014, Ted purchased a small software company for $200,000. He

Question

35. On January 1, 2014, Ted purchased a small software company for $200,000. He paid $110,000 for the fixed assets of the company & $90,000 for goodwill. How much amortization may Ted deduct on his 2014 tax return for the purchased goodwill? (Points : 1) $0 $3,000 $5,750 $6,000 $90,000

. Which of the following is not true about capital assets? (Points : 1)        Real property used in a trade or business is not a capital asset.
       Capital losses may be carried back for 3 years to offset capital gains in those years.
       For 2014, net long-term capital gains are granted preferential tax treatment.
       Individual taxpayers may deduct net capital losses of up to $3,000 per year.
       Shares of stock held for investment are capital assets.

Explanation / Answer

35.answer $90000/15 years=$6000.intangible goodwill can be amortized for income tax purposes over a 15 year period.

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