Derek purchases a small business from Art on June 30, 2019. He paid the following amounts for the business: 

Fixed assets...........................$180,000 

Goodwill.....................................40,000 

Covenant not to compete........30,000 

Total.......................................$250,000 

a. How much of the $250,000 purchase price is for Section 197 intangible assets?

b. What amount can Derek deduct on his 2019 tax return as Section 197 intangible amortization?