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

Essay

Assume that Cannon LLC acquires a competitor's assets on June 15ᵗʰ 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 8 years,and $50,400 to a 3 year non-compete agreement.On May 30ᵗʰ of the second year,the customer list is sold for $10,000.(e.g.,.1234 as 12%).(Round final answer to the nearest whole number.Round your allocation percentage to the nearest whole percentage)
1)What is Cannon's amortization expense for the second year?
2)What is the basis of the intangibles at the end of the second year?