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To: Cynic 2005 who wrote (147467)	11/15/1999 2:21:00 PM
From: GVTucker	Read Replies (1) \| Respond to of 176387

Mohan, RE: GTW sells a computer for $1200, with $400 mail-in rebate for 3 year internet sign-up with compuserve. Gateway gets to report $1200 in revenue. Gateway gets to report $1200 in their top line of computer systems sales The net margins on this $1200 will reflect on the bottom line. If GTW is subsidizing part of the $400 rebate in an agreement with Compuserve, they are indeed violating the law if they don't amortize the amount of the subsidy. If GTW is not subsidizing the deal with Compuserve, then they are completely right in booking the $1200 up front.