Ch 7 Homework key #9 explanation

Ch 7 Homework key #9 explanation - $5,560 = answer D See...

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You may find the following information useful if you had difficulty understanding the answer to this difficult question: For Ch 7 homework problem number 9, compute the answer as follows: $25,160- 5,000= 20160 / 180 months X 5 months = 560 amortized for the excess over 5,000 The 5 month period is from August through December, 2010 $5,000 deducted in year 1 plus 560 amortization =
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Unformatted text preview: $5,560 = answer D See the illustration in the text on page 177. Also see Ch 7 detailed lecture outline, V. Amortization of Intangible Assets, A. Organizational and Start-up cost, Deduction maximum of $5,000 and the rule for amortizing the excess over 180 month period. I hope this helps you. Sincerely, Dr. Anderson...
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