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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (16394)	8/5/2002 2:29:36 PM
From: Skeeter Bug	Respond to of 42834

Well, as soon as they discovered it was worth $5M, they would have to show it on their balance sheet just as they do with stock they issue and hold that goes up in value. and what do they do with stock they issue, but don't hold... rather, they issue it and give it away... to employees... or the electric company... or their leaseholder... Now if they give that stock or Monet away for less than current market value, then they have to reduce their balance sheet accordingly. They might even get lucky and get the CEO to pay them $1M for the painting in the process which would be shown as positive cash flow. Of course, the CEO would have to pay taxes on this difference between fair market value and what he paid at the earned income rate since it is salary... hey, that is what happens today with options! are you saying the $5,000,000 in ceo compensation would not be a company expense and run down the income statement in this case?