Re: I think I finally get it!!
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Posted by bg
(68.88.64.167) on June 11, 2004 at 00:57:07:
In Reply to: Re: I think I finally get it!! posted by JKelly on June 10, 2004 at 23:32:04:
I'm sorry, I did not mean to touch a nerve, here. I was simply pointing out that, accounting wise, a charge-off is not a tax break for the creditor. It is a tax-wash. The charge-off simply offsets the accrued revenue. I agree that there are a lot of flim-flam accounting tricks, ala Enron and MCI Worldcom. However, a charge-off, when used legitimately by a reputable company does not create income. In fact, if there are too many charge-offs, somebody is probably going to get fired.
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