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On June 2, 2018, Lokar Corporation purchases a patent for $68,000 from the inventor of a...

On June 2, 2018, Lokar Corporation purchases a patent for $68,000 from the inventor of a new extrusion process. The patent has 12 years remaining on its legal life. Also, Lokar purchases substantially all the assets of the Barrios Corporation for $750,000 on September 8, 2018. The values of the assets listed in the purchase agreement are as follows:

Inventory $250,000
Manufacturing equipment 1,176,000
Patent on compression process 105,000
Goodwill 95,000

Refer to the MACRS Depreciation Table to answer the following question.

Note: In your calculations, round amortization percentages to two decimal places, and dollar amounts to the nearest whole dollar. Assume the equipment has a MACRS recovery period of 7 years and that the full election expense is taken in the year of acquisition.

The maximum 2018 cost-recovery deductions for the tangible and intangible assets purchased is $

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ekkarill92 answered 2 months ago
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