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Strategies & Market Trends : Employee Stock Options - NQSOs & ISOs

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To: rkral who wrote (740)4/27/2005 2:10:05 PM
From: rkralRead Replies (1) of 786
 
Amazon adopts 123R and reports income gain as a result

"Net income was $78 million in the first quarter, or $0.18 per diluted share, compared with net income of $111 million, or $0.26 per diluted share, in first quarter 2004. Net income for the first quarter includes $56 million in income tax expense, compared with a $2 million income tax benefit in first quarter 2004. First quarter also includes a $26 million gain for the cumulative effect of a change in accounting principle related to the Company’s early adoption of SFAS 123(R)."
sec.gov

!!!!!
Can anybody explain how this ends with Amazon reporting a gain?

TIA, Ron
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