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: 
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.
Correct Answer:
Verified
Correct Answer:
Verified
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