Final answer:
The statement that a purchased trademark is a Section 197 intangible is true. Trademarks are a form of intellectual property that can be amortized over 15 years for tax purposes when acquired in connection with a business acquisition.
Step-by-step explanation:
A purchased trademark is indeed a Section 197 intangible according to the United States tax code. Section 197 intangibles are certain types of intellectual property, including trademarks, patents, and copyrights that are acquired in connection with the acquisition of a business. The cost of these intangibles can be amortized over a 15-year period, which means businesses can deduct a portion of the cost from their taxable income each year for 15 years.
A trademark is a distinguishing symbol or term for a certain product. For example, Chiquita bananas, Chevrolet cars, or the Nike "swoosh" that appears on shoes and athletic gear. By acquiring a trademark, a company or individual gains the exclusive right to use this distinct symbol or name to represent their products or services, and this right is secured by registering the trademark with the U.S. government.
In summary, the statement 'A purchased trademark is a § 197 intangible' is true.