Problem 8-14 (Algorithmic) Intangibles (LO 8.6)

Derek purchases a small business from Art on September 1, 2018. He paid the following amounts for the business:

Fixed assets	$332,200
Goodwill	66,440
Covenant not to compete	83,050
Total	$481,690

a. How much of the $481,690 purchase price is for Section 197 intangible assets? $

b. What amount can Derek deduct on his 2018 tax return as Section 197 intangible amortization?

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

$