1. Should incremental assets specifically acquired to support marketing driven promotional programs be capitalized or expensed? Examples include special production equipment to make specific sizes, flavors or color; packaging equipment to make special promotional or seasonal packages; and equipment to insert coupons, toys and other promotional items into packages.
If items are capitalized, what life should be used and where should the depreciation be taken, COS or A&M? If expensed, where should expense be taken, COS or A&M?