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Essay

INDOPCO

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Issue:

English

 

Written by:

Orval G

 

Date added:

March 20, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 364

 

Was viewed:

1578 times

 

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Essay content:

There have now been rulings where the IRS has become more aggressive in dealing with future benefits. The IRS realizes that companies will expense anything they can to reduce their tax burden. Even costs that would be incurred while investigating the expansion of a company's existing business should be expensed if they are connected to an event that produced a significant long-term benefit...
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The only way they can be expensed is if the acquisition proves to be an unsuccessful one. The INDOPCO ruling also leaves open the question as to what directly incurred means. Companies were left to decide whether to capitalize a cost that was incurred to secure a benefit that extended beyond the current year, even though the transaction was not one in which a specific, identifiable asset was acquired...
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