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It's better for a business to have expenses in depreciation and amortization because it lowers the tax burden on a cash cost that's typically already been paid
by ThunderSizzle 4y ago
It's better for a business to have expenses in depreciation and amortization because it lowers the tax burden on a cash cost that's typically already been paid years before.
I would love an in-depth review on why this move is smart or not.
- IG_Semmelweiss 4y agoThe question is do you lower taxes today a great deal ( a write off) or do you little by little via amortization. Ita quite common for companies to shed garbage and bad deals during acquisitions by booking writedowns (sometimes they are even used to hide fraud)... whats unusual in this case is that they are using the deal not ho hide fraud, but to hide good remastered shows they would rather not explain as a writeoff to anyone looking at their financials. Right now its open season to shed stuff and they are killing good shows in the process. Its like killing a perfectly healthy child during wartime...because you have too mouths to feed and hes not a particular cute child.