Replies to post #28764 on Phoenix Associates Land Syndicate (fka PBLSQ)

[Russian-Trader]

Wrong again.

In "Simple cost accounting" practices where somebody such as yourself would use the actual cost basis, the asset would cost you more in the long run because of the gain you would relize and the smaller depreciation amount you would have to write off.

The reason a company uses the "Market Value" for assets of greater value is they get a larger Depreciation write off, the assets are valued at what they are actually worth, and the cost for selling the asset is far less.

So if I were to use that car for 6 years and sold it for the same amount, I would have had a tax write off for 6 years and basically free use of a vehicle for all of that time.

Now had the assets been worth less than what they paid for them. You would use the actual cost incurred.

[LowFloatGoat]

Mr.P.

BTW, your entire argument is based on you selling the "car" at a profit. PBLS has not sold any of the "cars" they have previously bought.
Answer. You carry the car on your books at 10k. when it is sold, you book a gain of 8k. if it appraises at 18k, and you do not sell it, you do nothing to your books. It is still carried at 10k (less accumulated depreciation).

This is what I was referring to when I said "book value is being passed around like a cheap bottle of wine."

Many posters and mgmt are squawking on and on about assets and book value. However, as you know, companies are not in business to sell off assets. Companies are valued in the market based on the cash flows generated by the assets.

It looks like they have a good start based on the 2005 UNAUDITED financials. But, the bottom line is we need 2006 Q1-Q3 unaudited financials NOW. Then give us AUDITED Q4 and the 10K in February. THERE IS NO REASON TO KEEP THE 2006 UNAUDITED FINANCIALS FROM SHAREHOLDERS. END OF STORY!