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Technology Stocks : Wolf speed
WOLF 18.39-1.3%3:59 PM EST

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To: Ron who wrote (838)5/8/1998 10:45:00 AM
From: Marie Meyer  Read Replies (1) of 10714
 
Can someone explain this deal to me?

C3 buys equipment from Cree. Q. When did Cree start selling equipment?

C3 transfers the title back to Cree. Q. So is it really a purchase at all?

C3 leaves the equipment at Cree, presumably so that Cree can use it to make moissanite which it will sell back to Cree. Q. Why is C3 paying for both the equipment and the output?

When the equipment is fully depreciated, title goes back to C3. Q. Why? And how are the companies going to treat this from an accounting standpoint? For Cree, is this product revenue? And which company is going to show the depreciation on its books.
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