Problem $8-16($Algorithmic$)$

Intangibles $($LO $8\mathrm{.}6)$

Derek purchases a small business from Art on August $30,2022.$ He paid the following amounts for the business:

Fixed assets

Goodwill

$$274,600$

Covenant not to compete

Total

$54,920$

$68,650$

$$398,170$

a$.$ How much of the $$398,170$ purchase price is for Section $197$ intangible assets?

s

b$.$ What amount can Derek deduct on his $2022$ tax return as Section $197$ intangible amortization?

If required, round the final answer to the nearest dollar. Use months, not days, in your computations.