Assume That Cannon LLC Acquires a Competitor's Assets on June

Essay

Assume that Cannon LLC acquires a competitor's assets on June 15 ^th of a prior 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 eight years, and $50,400 to a three-year noncompete agreement. On May 30 ^th of the second year, the customer list is sold for $10,000. (Round your amortization and final answer to the nearest whole number. Round your allocation percentage to the nearest whole percentage, e.g., 0.1234 as 12 percent .)
1)What is Cannon's amortization deduction for the second year?
2)What is the basis of the intangibles at the end of the second year?