Intangibles (LO 8.6)
Devon purchased a small business from Art on March 30, 2023, and paid the following amounts for the business:
Fixed assets
Goodwill
Covenant not to compete
Total
$391,600
78,320
97,900
$567,820
a. How much of the $567,820 purchase price is for Section 197 intangible assets?
176,220
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b. What amount can Devon deduct on his 2023 tax return as Section 197 intangible amortization?
If required, round the final answer to the nearest dollar. Use months, not days, in your computations.