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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Dave who wrote (15326)	9/22/1998 8:42:00 AM
From: kech	Read Replies (2) \| Respond to of 152472

Tax Liability - Anyone know how to interpret this? From Leap Wireless Info: "Each Holder's potion of the Distribution will be taxable as ordinary income to the extent of such Holder's pro rata share of the current and accumulated earnings and profits of Qualcomm, measured as of the end of the fiscal year in which the Distribution occurs (which is expected to be the fiscal year ending Sept 27, 199). If the Holder's share of the Distribution exceeds such Holder's pro rata share of E&P, the excess will be treated first as a basis-reducing, tax-free return of capital to the extent of the Holder's adjusted tax basis in each Qualcomm share, and then as a capital gain (treated as short-term or long-term dpending on the duration the Holder has held each of its Qualcomm shares". Sounds like some mixture of LT and ST capital gains depending on time of ownership of Q and minus some amount of current Q earnings from this year. Is this right? Tom