On January 1 of the current year, Palm Corporation purchases the net assets of Vicki’s unincorporated business for \($600,000.\) The tangible net assets have a \($300,000\) book value and a \($400,000\) FMV. The purchase agreement states that Vicki will not compete with Palm Corporation by starting a new business in the same area for a period of five years. The stated consideration received by Vicki for the covenant not to compete is \($50,000.\) Other intangible assets included in the purchase agreement are as follows:

• Goodwill: \($70,000\) 

• Patents (12-year remaining useful life): \($30,000\) 

• Customer list: \($50,000\)

a. How would Vicki’s assets be recorded for tax purposes by Palm Corporation?

b. What is the amortization amount for each intangible asset in the current year?