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Vehicles” and fuel under “Gas and Oil”. Only costs directly
related to advertising, such as logos placed on the cars, were
recorded under “Advertising”. This method of accounting for the
TMI expenses was Menards’s approach to accounting for its own
racing expenses prior to TMI’s incorporation.
Menards also owned the racing assets used by TMI and
depreciated them on its books, records, and tax returns. TMI’s
assets consisted only of cash.
b. TMI’s Connection to Menards’s Business
When Menards staged grand openings for new stores, TMI
participated by sending drivers and providing an Indy car for
display. During TYE 1998, Tony Stewart and Robbie Buhl made
appearances at openings and signed autographs. Menards further
implemented the racing theme at store openings with a contest in
which customers could register to win a mini-Indy car.28
Menards also worked the TMI connection into store
promotional materials, particularly with respect to the annual
Race to Savings sale built around the Indy 500 and Memorial Day
weekend. The ads for the Race to Savings sale featured images of
TMI’s Indy cars and logo, as did employees’ T-shirts worn for the
sale. Customers could register to win a replica of the Indy 500
pace car.
28The mini-Indy car had 3.5 horsepower, a gasoline-powered
engine, and retailed at $700 in 1997.
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