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Migeru:
But the reason that's booked for tax purposes is that it's also booked for firm valuation purposes.

Starvid is seeing it from the income statement side, where the investment would be booked as 100% cost in year 1 (therefore lower profit => less tax). While of course there's the balance sheet to be considered: if you book 100% in year 1, then the asset has no value on year 2's balance sheet. Which would be a false image of the company's value. (I know that's what you're saying, I'm just putting it another way).

by afew (afew(a in a circle)eurotrib_dot_com) on Wed Jan 26th, 2011 at 11:03:50 AM EST
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