Derek purchases a small business from Arton September 1, 2008. He paid the following amounts for the business.
Fixed assets $220,000
Good will $40.000
Covenant not to compete $45,000
Total $305,000
a. How much of the $305,000 purchase price is for Section 197intangible assets?
b. What amount can Derek deduct on his 2008 tax return asSection 197 intangible amortization?