Multiple Choice
Mr.and Mrs.Carleton founded Carleton Industries in 1993.This year,an independent appraiser placed a $25 million value on Carleton's business; $5 million of the value was attributable to unrecorded goodwill.Which of the following statements is true?
A) Mr.and Mrs.Carleton are allowed to amortize the $5 million value of their business goodwill over 15 years.
B) Mr.and Mrs.Carleton have a zero tax basis in their business goodwill.
C) Mr.and Mrs.Carleton cannot amortize the $5 million value of their business goodwill because it is an intangible asset with an indeterminable life.
D) None of the above is true.
Correct Answer:
Verified
Correct Answer:
Verified
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