Intangibles (LO 8.6)

Derek purchases a small business from Art on September 1, 2020. He paid the following amounts for the business:

Fixed assets	$299,800
Goodwill	59,960
Covenant not to compete	74,950
Total	$434,710

a. How much of the $434,710 purchase price is for Section 197 intangible assets? $fill in the blank f16e72fdef9af8d_1

b. What amount can Derek deduct on his 2020 tax return as Section 197 intangible amortization?

If required, round the final answer to the nearest dollar. Use months, not days, in your computations.