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Another thing to consider is how the money is spent changes how much profit is made. If Amazon reinvests into assets, that money isn't considered a loss. So it
by rhino369 11y ago
Another thing to consider is how the money is spent changes how much profit is made.
If Amazon reinvests into assets, that money isn't considered a loss. So it doesn't reduce profits. So when Amazon buys a video library those IPs are assets.
You only deduct spending that are expenses.
As Amazons business changes it might be harder to hide their profits in expenses.
- brashrat 11y agoinvestments in assets result in depreciations which are expenses that reduce profits; you don't write off the asset as a loss all in one year, but it all gets written off across a series of years.