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Technology Stocks : Newbridge Networks
NN 16.41-1.8%Dec 12 3:59 PM EST
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To: Doug who wrote (14449)11/11/1999 1:24:00 AM
From: Method  Read Replies (2) of 18016
 
Using the purchase method means that 3/4 of the goodwill will be amortized as Eligible Capital Property at 7% forever. This is the tax treatment. Doug is combiing the accounting treatment and the tax treatment in his response. Furthermore, goodwill amortization is capped at 20 years under the new exposure draft. Goodwill amortization ofr accounting purposes has nothing to do with the tax treatment.
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