Unformatted text preview: (relating to trademark and trade name expenditures), and 248 (relating to organizational expenditures) are to be capitalized and treated as part of the basis of the asset to which they relate. Expenditures made in connection with property having a reasonably determinable useful life are to be recovered for earnings and profits purposes over such useful life. There will be no amortization for expenditures made in connection with property which does not have a reasonably determinable limited useful life. This provision is applicable to the effect on earnings and profits of amounts paid or accrued in taxable years beginning after the date of enactment. In problem 27, this would lead to a positive adjustment to E&P of $933 (14,000/180 months x12) since the organizational expenditures had been amortized over 15 years (no Sec 248 election in 2010)....
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- Spring '08
- Depreciation, Generally Accepted Accounting Principles, 15 years, $933, 180 months