- 35 -
Morning Ledger Co. v. United States, 507 U.S. at 566. We agree
with petitioner that brokerage customers are not, per se,
distinguishable from newspaper subscribers in any way that would
make the circumstances we consider here distinguishable from
those in Newark.
C. The Value and Useful Life of the Intangibles Petitioner
Acquired
1. In General
Having decided that the Rose customer accounts are
amortizable under section 167, we now turn to the question of the
values or amounts that are subject to amortization and the useful
lives of the assets. On these points the parties have relied on
expert witnesses to provide opinion evidence based on the factual
record. Generally, the parties’ experts used similar methodology
to arrive at the values of the Rose customer accounts. The
experts attempted to compute the net revenue stream that
petitioner could expect from the Rose customer accounts. Both
used petitioner’s data of customer performance in petitioner’s
business16 and applied the Rose revenues that were generated in
the year before the acquisition.
16 Respondent argues, however, that Rose’s experience would
be preferable and that petitioner’s experience was used because
Rose’s experience was not available.
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