Derek purchased a small business from Art on August 30, 2022. He paid the following amounts for the business:

Fixed assets	$170,000
Goodwill	50,000
Covenant not to compete	20,000
Total	$240,000

What amount can Derek deduct on his 2022 tax return as Section 197 intangible amortization?

Use months, not days, in your computations. Round your answer to the nearest dollar.

Can someone explain me this step by step. Im stuck here.