Stellar Corporation Purchased All of the Assets of Bellavia Company

Essay

Stellar Corporation purchased all of the assets of Bellavia Company as of January 1 this year for $1 million. Included in the assets acquired are the following intangible assets:
$$\begin{array} { | l | l | r | } \hline \text { Asset } & \text { Useful Life } & \text { Cost } \\\hline \text { Patent } & 10 \text { year } & \$ 120,000 \\\hline \text { Covenant not to complete } & 3 \text { years } & 30,000 \\\hline \text { Goodwill } & \text { Indefinite } & 300,000 \\\hline\end{array}$$ What is Stellar's maximum amortization deduction for the year?