Hubert Purchases Fran's Jewelry Store for $950,000 Hubert and Fran Agree to Assign $110,000 to a 7-Year

Essay

Hubert purchases Fran's jewelry store for $950,000. The identifiable assets of the business are as follows:
$\begin{array}{lrr}&\text { Basis } &\text { FMV }\\\text { Inventory } & \$ 90,000 & \$ 97,000 \\\text { Accounts receivable } & 55,000 & 50,000 \\\text { Building } & 100,000 & 225,000 \\\text { Land } & 280,000 & 300,000\end{array}$
Hubert and Fran agree to assign $110,000 to a 7-year covenant not to compete. How should Hubert allocate the $950,000 purchase price to the assets?