On April 18, 2017, 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:

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 2017.

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Adjusted basis Fair Market Value Asset Inventory Equipment Building Patent $10,000 30,000 120,000 15,000 10,000 $8,500 3,500 80,000 500 5,000 Land