- 17 -
million more than what its initial basis would have been if the
Court had not excluded the present value of the assumed editorial
costs," any additional deduction is unwarranted. However,
respondent's argument misses the mark. As discussed earlier, we
held that the tax basis of this intangible asset was $14,641,000
as of January 3, 1986 and was to be increased as fulfillment
costs were thereafter incurred, through petitioner's TYE 1991.
Id. at 455. What "would have been" if we had decided differently
is irrelevant.
Moreover, if we had determined in Meredith I that the
editorial costs were not contingent subscriber expenditures, such
that the "maximum" tax basis that respondent theorizes in fact
applied, Meredith would have been entitled to amortize the entire
amount of its editorial costs and associated tax savings through
its TYE 1991 over the stipulated 42-month useful life of the
asset. Id. at 445. The present controversy never would have
materialized. In Meredith I, respondent inveighed against such a
result and prevailed. Respondent cannot have it both ways.
To reflect the foregoing,
An appropriate order
granting petitioner's motion
for partial summary judgment
and denying respondent's
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