LO 7.5 19. Derek purchases a small business from Art on September 1, 2010. He paid the following amounts for the business:

Fixed assets $220,000 Goodwill 40,000 Covenant not to compete 45,000 Total $305,000

a. How much of the $305,000 purchase price is for Section 197 intangible assets?

$ ____________

b. What amount can Derek deduct on his 2010 tax return as Section 197 intangible amortization?

$ ____________