As part of the purchase price of a business on january 1, Accounting Basics

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As part of the purchase price of a business on january 1

Problem

As part of the purchase price of a business, on January 1, Sam Farrow pays $ 100,000 for the patent to an industrial gear. In addition, as part of the same purchase, Sam pays $10,000 for the business's goodwill and another $10,000 for the seller's covenant not to compete for the next five years. Compute Sam's amortization deduction for the year of purchase.

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Accounting Basics: As part of the purchase price of a business on january 1

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