Mistress Expense on Income Statement - WTF?

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January 25, 2023

by a professional from Northern Arizona University in Tucson, AZ, USA

Paying for a Mistress on the income statement is that a Red Flag?




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Reply by an admin
from Stanford University in Honolulu, HI, USA
A few searchers I've talked to have discovered it after the acquisition. Presumably, the owner might be too embarrassed to mention non-employee employee on the books. The searchers usually consider it a happy discover because it means they have more wiggle room on hiring or other expenses than they anticipated in their models.
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Reply by a searcher
from University of California, Berkeley in San Francisco, CA, USA
I would suggest looking up such expense. in the IRS codes and GAAP treatment. Most importantly is whether the expense will be required post close and whether if the consideration is desirable for the buyer.
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