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To: hueyone who wrote (119108)5/22/2002 8:31:55 AM
From: rkral  Respond to of 152472
 
OT .. When our companies fill out their tax returns for the IRS, many of them happily report stock option expense right up front using the Black Scholes model, subtracting stock options expense from taxable income

As you implied in your next post to Clark, they aren't subtracting "stock option expense", except in pro-forma income statements in the footnotes, afaik.

Why would a company pass-up reporting an expense thereby reducing income taxes? Could it be that they don't want to do anything that might eventually force their employees to begin paying income taxes on the unpaid premiums for the granted call options?

Ron



To: hueyone who wrote (119108)5/22/2002 12:38:04 PM
From: David E. Taylor  Read Replies (1) | Respond to of 152472
 
Deleted.

David T.