GT Advanced Technologies Inc fka GTAT

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Based on my accounting background....limited....The PO would be set up with multiple line items. Equipment, Setup and Service.
A customer would like to expense as much as they can so service and Setup would be an expense and equipment would be capatalized.

From GT' side all would be revenue but they would probably book a loss on the $200 K sale as the standard cost is probably in the $230K range. Negative gross margin on the equipment!!

Not sure how the BK affects classical accounting practices.as in the difference between book costs and sales price.
Maybe as part of the BK reorg a new cost basis is established.