Problem: CEC - Sprout Corporation
Sprout Corp. purchased in 20x7 an existing business and acquires, among other assets, a customer list for $20,000 and goodwill for $60,000. In 20x9, the business is sold. Sprout Corp. receives $40,000 for the customer list and $100,000 for the goodwill.
Required:
Track the Cumulative Eligible Capital Account (CEC) for the relevant years.