> From bhandari at phoenix.Princeton.EDU Sat Aug 28 14:55:41 1999
>
> Jordan, is the decision to expense--rather than
> capitalize--software tax related?
>
> I would imagine. I think in general the distinction between current
> expenses and amortizable ones is largely seen in corporate america
> as being an artificial one, and one that only leads to higher
> taxation. So yes, I believe that a not insignificant portion of
> the GDP is spent on trying to outsmart the taxman and this is a
> good example. If you can expense something, it's better to.
Unless you are trying to inflate the assets of a company in order to secure credit from a financial intitution (which require audited financials, but those can be fudged, as you note in a later post.)
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Joseph Noonan jfn1 at msc.com