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<<Pray tell, kind Cat Fool, what words and gestures you may have used to distract the examiner whilst you transformed his 15-year intangibles [the contracts with known lives] right before his very eyes....>>

I'm not so sure...

My CD-ROM drive took a dump, so I can't really do the research. But covenants have been allowable for amortization for years...long before the 15 year amort. rules for intangables went into effect just a few years ago. And the amortization for the covenant was over the life of the covenant. That much I do know...or at least I think I know.

And I don't think that a contract (such as a covenant) is an "intangable" as defined in the law (such as goodwill, client lists, etc.). So I'm not so sure how dumb the auditor might have been. I'd almost bet my bottom dollar on the fact that you can amortize a covenant over the life of the covenant...and not over 15 years as an intangable.

But I'll have to wait until Monday afternoon...when the computer repair guys show know for sure.

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