On April 2, Reid Inc Which of the Following Statements Is False?
A) Reid Must

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: $$\begin{array} { l r } \text { Accounts receivable } & \$ 38,000 \\\text { Inventory } & \mathbf { 4 1 5 , 0 0 0 } \\\text { Fixtures and equipment } & \underline { \mathbf { 1 4 7 , 0 0 0 } } \\& \underline { \underline { \mathbf { 6 0 0 , 0 0 0 } } }\end{array}$$ 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.