The cost of a covenant not to compete (a/k/a a “noncompete agreement”) sometimes is properly amortized over its stated term (its legal life, typically not more than 3-5 years) but sometimes instead must be amortized over 15 years (180 months) regardless of its term. Briefly explain exactly when (i.e., under what circumstances) and why this difference. A quick example of each situation would help..

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In todays fastchanging corporate environment there may be instances where the company might seem it appropriate to enter into a covenant not to compet... View the full answer