The June tax asset was created because of a tax adjustment for Client Meals and Entertainment which we/tax can only deduct 50% of the total.  The amount in the account is $1,493.74 in June so a tax adjustment for $747 was added to income which was tax affected at 35% which caused the $262 tax that it hitting the interco accounts receivable/payable account.

I hope that I answered your question.

To answer your last question, I can't think of anything that needs special consideration for the winding up of the companies, but if I do I will let you know.

If the above doesn't make any sense let me know.  

Mary



Felecia Fitzgerald
08/14/2001 12:03 PM


To:	Mary Fischer/HOU/EES@EES
cc:	Karen Ballesteros/Western Region/The Bentley Company@Exchange 
Subject:	Co 1580 more data since phone call - question has changed.

In June we forced income before taxes to be zero.  There was a $262.00 tax asset posted in June and jumped to $54K in July.  We did not force income before taxes to be zero for July.  July income before taxes was a loss of $157K.  $54K tax asset is about 1/3 of this which seems logical so I think that July is okay.    I don't understand how the June tax asset of $262.00 was generated.

This company the TB and 1581 the related payroll company is shutting down and we have to reverse everything on this company by October.  Is there special considerations that we need to make on this company in this process.

As always shanks for your help.


Felecia and Karen