definiens: means, for each fiscal year or other period, an amount equal to the Company 's taxable income or loss for such year or period, detennined in accordance with Code § 703(a ) ( for this purpose, all items of income, gain, loss, or deduction required to be stated separately pursuant to Code § 703(a)(1 ) shall be included in taxable income or loss ), with the following adjustments : ( i ) Any income of the Company that is exempt from federal income tax and not otherwise taken into account in computing Profits or Losses pursuant to this provision shall be added to such taxable income or loss ; ( ii ) Any expenditures of the Company described in Code § 705(aX2)(B ) or treated as Code § 705(a)(2)(B ) expenditures pursuant to Regulations § I.704 - 1(b)(2)(iv)(i ), and not otherwise taken into account in computing Profits or Losses pursuant to this provision, shall be subtracted from such taxable income or loss ; ( iii ) Gain or loss from a disposition of property of the Company with respect to which gain or loss is recognized for federal income tax purposes shall be computed by reference to the Book Value of such property, rather than its adjusted tax basis ; ( iv ) In lieu of the depreciation, amortization, and other cost recovery deductions taken into account in computing taxable income or loss, there shall be taken into account the Depreciation on the assets for such fiscal year or other period ; and -21 - I\ .. 0 ( v ) Any items which are separately allocated pursuant to Sections 10.1 and/or 10.2 which otherwise would have been taken into account in calculating Profits and Losses pursuant to the above provisions shall not be taken into account and, as the case may be, shall be added to or deducted from such amounts so as to be not part of the calculation of the Profits or Losses~ and ( vi ) Any income of the Company that is recognized as a result of receiving a Member Recovery Amount shall be excluded from the calculation of the Profits and Losses, and shall be specially allocated in accordance with Section 6.2