Derek purchases a small business from Art on August 1, 2015. He paid the following amounts for the business:
Fixed assets ................................. $220,000
Goodwill .................................... 50,000
Covenant not to compete ................. 45,000
Total ......................................... $315,000
a. How much of the $315,000 purchase price is for Section 197 intangible assets?
$
b. What amount can Derek deduct on his 2015 tax return as Section 197 intangible amortization?
$