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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: LLCF who wrote (5655)7/25/2000 1:10:53 PM
From: Ilaine  Read Replies (1) of 436258
 
In the example of Amazon's vendor being paid in Amazon stock, as you pointed out, "cost of goods sold" is zero, so there is no tax deduction, either, so it's not a free lunch. Further, the vendor does have to pay cash to the publisher for the books, and the publisher has to pay the printer, and the printer has to pay the paper company, so someone, somewhere, has to make some real cash or the whole thing will collapse.
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