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Why Would a Taxpayer Elect to Capitalize and Amortize Intangible

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Essay

Why would a taxpayer elect to capitalize and amortize intangible drilling costs (IDCs) rather than expense such costs?


Definitions:

Employee Owners

Workers who have a stake in the company they work for, typically through stock ownership or share options.

Stock Price

The current price at which a share of a company's stock is trading on the financial markets.

Motivation

Refers to forces within an individual that account for the level, direction, and persistence of effort expended at work.

Organization's Responsibility

The obligations and duties an organization has towards its stakeholders, including ethical behavior, compliance with laws, and social contributions.

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