Funny Money: 1+1=$50M??

[Jim Fleming]

On Monday, March 31, 1997 12:56 AM, Valdis.Kletnieks at VT.EDU wrote:
@ On Sun, 30 Mar 1997 15:22:00 CST, Jim Fleming said:
@ > You apparently think it will bring $5 million.
@ > I claim that $50 million is more likely.
@ 
@ Even after we've seen postings from (was it you, Kim?) stating
@ that if they had billed *LAST* year at the proposed rates, 
@ they would have taken in $3M or so?
@ 
@ I certainly hope that we *DONT* see $50M in income - this would
@ imply a total collapse of CIDR, and damned if I know where we're
@ going to find an upgrade path out of our Cisco 7500's ;)

The $50 million refers to capitalization not income.

As an example, a leasing company could capitalize
a router for $50,000 and collect "rent" each month
on it. The rent would show up on the Income and
Expense statement. The $50,000 router would usually
show up on the Balance Sheet as an asset.

If a company pays $10,000,000 for a /8 then that
would show up as an asset.

Now, IF someone gives that company a /8 then
by rights the company has to show that as either
an equity investment from the donor or as income.
In the first case, the donor owns a piece of the
company, in the second the IRS gets to levy taxes
on the impuned income.

It is sort of ironic that the U.S. Government's NSF
is currently handing out taxable assets whithout
much concern for the IRS implications. Since the
NSF deals with large multi-million dollar grants,
one would think they would have all these bases
covered.

Has ARIN covered these bases?

--
Jim Fleming
Unir Corporation
http://www.Unir.Corp

Check out...http://Register.A.Mall