Because Alatorre must enter a competitive bidding at the end of 2015, it is unlikely that the franchise will be retained beyond 2015.

Because Alatorre must enter a competitive bidding at the end of 2015, it is unlikely that the franchise will be retained beyond 2015. What amount should be amortized for the year ended December 31, 2007? 3. On January 1, 2007, Alatorre incurred organization costs of $275,000. What amount should be expensed in 2007?