- 100 -
however, arguing against what appears to be the rigid approach of
the majority that, if the taxpayer’s method of accounting for
overhead is to deduct all overhead that does not increase on
account of capital activities, such method of accounting clearly
reflects income and, thus, must be accepted by respondent.
I can do no better than to close with the majority’s own
words:
In our minds, an expenditure that produces both a
current and long-term benefit is neither 100 percent
deductible nor 100 percent capitalizable. Instead,
regardless of whether the expenditure’s primary or
predominant purpose is to benefit significantly the
business’ current operation, on the one hand, or its
long-term operation, on the other hand, the expenditure
is capital in nature to the extent that it produces a
significant long-term benefit and deductible to the
remaining extent. * * *
Majority op. p. 61.
WHALEN and BEGHE, JJ. agree with this concurring in part and
dissenting in part opinion.
2(...continued)
such acquisitions was that associated with the need to
distinguish between acceptable and unacceptable risks; i.e., the
credit analysis activities. Put simply, the hunt was essential
to the capture.
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