Intangible Assets (LO. 10) On April 18, 2020, Petros buys all the assets of Brigid's Muffler Shop. Included in the purchase price of $296,000 is a payment of $19,100 to Brigid not to open a competing shop in the state for a period of 5 years, Brigid's assets at the date of sale are as follows: Asset Adjusted basis Fair Market Value Inventory $8,900 $11,600 Equipment 3,200 31,400 Bullding 79,500 113,500 Patent 800 13,000 Land 4,900 9,000 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 for 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 amdunt of the deduction Petros will be allowed on the purchase of Brigid's assets for 2020 is $ 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) And the recovery period is If the recovery 5 Years 7 Years 10 Years The depreciation rate is 3 Years 15 Years 20 Years 33.33 44.45 14.81 7.41 20.00 32.00 19.20 11.52 11.52 5.76 14.29 24.49 17.49 12.49 8.93 8.92 8.93 4.46 year is 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 10.00 18.00 14.40 11.52 9.22 7.37 6.55 6.55 6.56 6.55 3.28 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 Table A10-9 MACRS Depreciation for Nonresidential Real Estate Placed in Service after May 12, 1993 Applicable convention: mid-month (applicable recovery period: 39 years) And the month in the first recovery year the property is placed in service is 1 2 3 4 5 9 10 11 12 If the recovery year is 1 2-39 40 2.461 2.564 0.107 2.247 2.564 0.321 2.033 2.564 0.535 6 7 8 The depreciation rate is 1.391 1.177 0.963 2.564 2.564 2.564 1.177 1.391 1.605 1.819 2.564 0.749 1.605 2.564 0.963 0.749 2.564 1.819 0.535 2.564 2.033 0.321 2.564 2.247 0.107 2.564 2.461