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

[Jim Browning]

>From:  Jim Fleming[SMTP:JimFleming at unety.net]
>Sent:  Sunday, March 30, 1997 11:45 PM
>
>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.

You need to take a class in accounting.  You have talked at length about 
"inventory" of addresses.  Inventory is valued at the lower of cost or 
market value.  No cost = no asset on the balance sheet.

"Impuned income"?  ROFL...  Did you intend to say impugned?  Meaning "false 
or questionable"?  That's certainly what it would be all right..   You 
would have a n issue with your auditors if you _imputed_ income because 
someone allocated you the rights to use address space for free..

Creative approach, I must say, but way off the mark...

>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.

Last I checked, the NSF wasn't responsible for advising American businesses 
on the tax treatment.  And one would think you would check your facts 
before putting offering public tax advice...  It might help keep your 
insurance premiums down.

>Has ARIN covered these bases?

They are, of course,  totally irrelevant.
--
Jim Browning