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