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RUWE, J., concurring in part and dissenting in part: I
agree with the majority’s legal analysis and its application of
that analysis to ACC’s expenditures for salaries and benefits
(hereinafter “salaries”) that were incurred in connection with
the acquisition of installment contracts. The majority correctly
holds that the percentage of salaries related to credit analysis
activities must be capitalized. However, the majority then holds
that “overhead” expenditures need not be capitalized. I disagree
with the majority’s conclusion that the “overhead” expenses were
not directly related to the acquisition of installment contracts
because, in my opinion, that conclusion is inconsistent with the
majority’s specific findings of fact.
The following breakdown of specific expenditures appears on
page 11 of the majority’s findings of fact:
Breakdown of Specific Expenditures
1993
Salary Percentage of Total Expenses Amount
And Benefits Related to ACC’s Credit In
Employee Wages FICA MESC/FUTA BC/BS Total Expense Analysis Activities Issue
Steve Balan $69,359 $4,504 $313 $4,062 $78,238 50 $39,119
James Blasius 89,769 4,713 313 4,062 98,857 75 74,143
Cass Budzynowski 43,500 3,213 313 1,790 48,816 100 48,816
Hope McGee 16,248 1,216 313 3,692 21,469 100 21,469
Kelly 16,100 1,193 313 1,790 19,396 100 19,396
Stacey 10,280 767 313 2,086 13,446 75 10,085
245,256 15,606 1,878 17,482 280,222 213,028
Overhead Items
Printing 9,412 75 7,059
Telephone 12,454 75 9,341
Computer 19,598 95 18,618
Rent 34,413 50 17,207
Utilities 5,162 50 2,581
81,039 54,806
361,261 267,832
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