Intangible Assets (LO. 10) On April 18, 2020, Petros buys all the assets of Brigid's Muffler Shop. Included in the purchase price of $304,000 is a payment of $20,200 to Brigid not to open a competing shop in the state for a period 5 years. Brigid's assets at the date of sale are as follows: Asset Adjusted basis Fair Market Value Inventory $8,500 $11,400 Equipment 3,800 29,100 Building 79,400 127,800 Patent 300 17,700 Land 4,800 10,100 The patent is on a special muffler that Brigid developed and patented 5 years ago. Petros would like to know the maximum amount of the deduction he will be allowed on the purchase of Brigid's assets fo 2020. Refer to the MACRS Depreciation Tables to answer the following question. Note: Do not round any division. Round other computations to the nearest whole dollar. Assume the equipment has a MACRS recovery period of 7 years and that bonus depreciation is taken in the year of acquisition. The maximum amount of the deduction Petros will be allowed on the purchase of Brigid's assets for 2020 is $ 216,300 X. Table A10-2 MACRS Depreciation for Property Other Than Real Estate Applicable convention: mid-year (applicable methods: 200% or 150% declining balance, switching to straight-line) 3 Years 5 Years 15 Years 20 Years If the recovery year is 1 33.33 44.45 14.81 7.41 20.00 32.00 19.20 11.52 11.52 5.76 And the recovery period is 7 Years 10 Years The depreciation rate is 14.29 10.00 24.49 18.00 17.49 14.40 12.49 11.52 8.93 9.22 8.92 7.37 8.93 6.55 4.46 6.55 6.56 6.55 3.28 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 5.00 9.50 8.55 7.70 6.93 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 3.750 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231