Tax Drill $-$ Section $1253$

Tndicate whether the following statements are "True" or "False" regarding the tax treatment of franchises, trademarks, and trade names.

a$.$ The franchisee capitalizes the payments and amortizes them over $15$ years.

b$.$ Section $1253$ provides that a transfer of a franchise, trademark, or trade name is not a $$ transfer of a capital asset when the transferor retains any significant powec, right, or continuing interest in the property transferred.

c$.$ The contingent franchise payments are capital gain income for the franchisor and an

ordinary deduction for the franchisee when the transferor retains a significant power, right, or coekinuing interest.