Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Don Lloyd who wrote (179799)	7/15/2002 1:45:13 PM
From: LLCF	Read Replies (2) \| Respond to of 436258

<If the sole owner of a company grants a half interest in the company to his sole employee and quits paying him a salary, he has diluted his ownership by 50%. Does it really make any sense at all for him to record a phantom cash expense of half of the market value of the company as well?> 1.) There are all sorts of examples in accounting where treatment depends on 'size' of capital change... takeovers vs investments etc. 2.) My point is, it doesn't HAVE to be a 'cash expense'... there are lots of non-cash expenses. 3.) Of course they can still cross entered in the capital account. DAK