What is Grace's 2021 deduction for amortization?

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 28CE: LO.7 On October 1, 2019, Priscilla purchased a business. Of the purchase price, 60,000 is allocated...
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Oliver, an insurance agent and sole practitioner, decided to sell his insurance agency to Grace. Under the terms of the sales agreement, Grace paid $8,000 for the goodwill that Oliver had garnered throughout his insurance career. The purchase was completed on March 3, 2021. What is Grace's 2021 deduction for amortization?

 

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