Richard...

Total settlement...................1,600,000

foreign taxes...........................-264... liability????

DM Expenses........................ -198,000

Gr profit noted..1,039,000....1,138,000

where is the missing 100,000?

How do they jointly account for the tax liability? The full amount should not be on e.Digitals books.

I looked for the 198,000 DM expenses page 21 and 22....I do not see it spelled out, how do you derive that number?

Net..................... 1,402,000

60% to edig.............................. 841,000

40% to DM.................................5...

** Amount shown on the Income statement

Gross profit from settlement 1,039,000