Please do not give solution in image format ? Derek purchases a small business from Art on August 30, 2022. He paid the following amounts for the business:Fixed assetsGoodwillCovenant not to competeTotal$456,40091,280114,100$661,780a. How much of the $661,780 purchase price is for Section 197 intangible assets?205,380 b. What amount can Derek deduct on his 2022 tax return as Section 197 intangible amortization?If required, round the final answer to the nearest dollar. Use months, not days, in your computations.4,564 X

Section 197 of the Internal Revenue Code of the United States addresses the amortization of…

b. What amount can Derek deduct on his 2022 tax return as Section 197 intangible amortization? If required, round the final answer to the nearest dollar. Use months, not days, in your computations. $ 4,564 X

b. What amount can Derek deduct on his 2022 tax return as Section 197 intangible amortization? If required, round the final answer to the nearest dollar. Use months, not days, in your computations. $ 4,564 X

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges

Section: Chapter Questions

Problem 54P

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Question

Please do not give solution in image format ?

Derek purchases a small business from Art on August 30, 2022. He paid the following amounts for the business:
Fixed assets
Goodwill
Covenant not to compete
Total
$456,400
91,280
114,100
$661,780
a. How much of the $661,780 purchase price is for Section 197 intangible assets?
205,380

b. What amount can Derek deduct on his 2022 tax return as Section 197 intangible amortization?
If required, round the final answer to the nearest dollar. Use months, not days, in your computations.
4,564 X

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