On April 2, Reid Inc

Multiple Choice

On April 2, Reid Inc., a calendar year taxpayer, paid a $750,000 lump-sum price to purchase a business. The appraised FMVs of the balance sheet assets were:
Accounts receivable $ 38,000
Inventory 415,000
Fixtures and equipment 147,000
$ 600,000
Which of the following statements is false?

A)  Reid must capitalize $150,000 of the cost as purchased goodwill.
B)  Reid may amortize the $150,000 cost for both book and tax purposes.
C)  Reid's amortization deduction for the current year is $7,500.
D)  None of the above is false.