Derek purchases a small business from Art on July 1, 2017. He paid the following amounts for the business:

Fixed assets	$220,000
Goodwill	50,000
Covenant not to compete	55,000
Total	$325,000

a. How much of the $325,000 purchase price is for Section 197 intangible assets? $

b. What amount can Derek deduct on his 2017 tax return as Section 197 intangible amortization?

Use months, not days, in your computations.

$