On April 18, 2016, Petros buys all the assets of Brigid's Muffler Shop. Included in the purchase price of $295,000 is a payment of $20,000 to Brigid not to open a competing shop in the state for a period of 5 years. Brigid's assets at the date of sale are as follows:

Asset ________________Adjusted basis __________Fair Market Value

Inventory ....................... $ 8,500 ............................. $ 10,000

Equipment ....................... 3,500 ................................ 30,000

Building ........................ 80,000 .............................. 120,000

Patent .............................. 500 ................................ 15,000

Land .............................. 5,000 ............................... 10,000

The patent is on a special muffler that Brigid developed and patented 5 years ago. Petros would like to know the maximum amount of the deduction he will be allowed on the purchase of Brigid's assets for 2016.