Multiple Choice
Mr. and Mrs. Schulte paid a $750,000 lump-sum price to purchase a business. At date of purchase, the appraised FMVs of the balance sheet assets were: 
Which of the following statements is true?
A) The Schultes must allocated the $750,000 cost to the balance sheet assets based on the assets' relative FMV.
B) The Schultes must capitalize $150,000 of the cost to nonamortizable goodwill.
C) The Schultes may deduct $150,000 of the cost as business goodwill.
D) None of the above is true.
Correct Answer:
Verified
Correct Answer:
Verified
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