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

Covenant not to compete

Total

$$251,200$

$50,240$

$\frac{62,800}{\text{\$}364,240}$

a$.$ How much of the $$364,240$ purchase price is for Section $197$ intangible assets?

$

$x$

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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.

$

$x$