Integrated Freight Corp (fka IFCR)

[eddy2]

The retained earnings was not well explained. Like treasury stock that is tax's owed to the government that must be worked backwards to find the net revenue retained earnings must also be worked backwards to obtain the amount of equity investors have invested.

Your total of equity, retained earnings based on average of a fifty percent tax retention as well the treasury stock based on a fifty percent tax retention that has to be paid or cancelled through the allowable depreciation tax retention program.


So on average a retained earnings of a $1 will require a public investment of two dollars. Equity is both retained earnings and treasury stock minus bought back equity that is cancelled or if one likes outstanding shares owed minus your retained equity. This of cours is done by dividing your outstanding shares by two as a rough rule of thumb.

This would be the assumption that all equity and net revenue is taxed at fifty percent. This is were the goodwill of the government steps in that you always see in a stock offering. The higher the goodwill figure the lower the marginal tax rate is on the net revenue.

When looking at any public offering always consider the tax implication or good will. Higher the goodwill the lower the taxs that are paid on net revenue to bring it to the fifty percent tax bracket for accounting purposes.

Good luck and do read up on your tax implication rules based on domestic as well international rulings.