Seller discretionary earnings

USA Discussion in 'General Accountancy Discussion' started by Jmoody66, Jan 26, 2019.

  1. Jmoody66


    Jan 26, 2019
    Likes Received:
    Working from a Normalized income statement. Basic in,expenses,depreciation,salaries,taxes, etc = net income.
    Then comes my confusion.
    The company did add backs and as I understand's typically the owners compensation BUT they also added the directors pay of 98k because she was like a partner in this and will stay on for 60k yr which is the normal rate.
    Anyway it seems like her salary would have been listed with salaries and at best a 38k add back since 60k is the norm.
    I'm trying to figure out how much I can expect to make.
    Jmoody66, Jan 26, 2019
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