Subject: RE: SO2 Reclass Entry - Correction
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked]
Date: Wed, 10 Oct 2001 08:54:19 -0700 (PDT)

Per my conversation with Eloise Williams the proceeds of $138,475,829 were never recorded on 33R but were recorded on 33Q.  Since this is a sale of inventory I'm assuming that the gain will be ordinary and should be reduced by the tax basis in the credits of $104.8 million.

 -----Original Message-----
From: 	Herrold, Jeff  
Sent:	Wednesday, October 10, 2001 9:39 AM
To:	Fischer, Mary
Cc:	Seade, Jerry; Swafford, John; Eggebrecht, Kurt
Subject:	FW: SO2 Reclass Entry - Correction

Mary, I'm not sure what accounting is doing.  The entry below is not complete.  For third quarter close company 33R received proceeds of $138,475,829 for SO2 credits.  The credits are held in inventory on company 33Q, the mark-to-market revenue for the SO2 is reported on 33R.

The attached workbook is my best guess of the tax basis in the credits ($104.8 million); the tax gain should be about $33.7 million.

Can you check with your accounting contacts for company 33R to get a complete picture of the accounting entries?

 << File: so2 inv1.xls >> 

 -----Original Message-----
From: 	Williams, Eloise  
Sent:	Wednesday, October 10, 2001 8:41 AM
To:	Herrold, Jeff
Cc:	Murphy, Carla
Subject:	FW: SO2 Reclass Entry - Correction

The correct entry is a debit to 19999995 (Cash) and a credit to 45000000 (Revenue)

 -----Original Message-----
From: 	Williams, Eloise  
Sent:	Wednesday, October 10, 2001 8:27 AM
To:	Herrold, Jeff
Cc:	Murphy, Carla
Subject:	SO2 Reclass Entry

Jeff,

The SO2 entry was booked to the following accounts:

Debit to 19999995             $138,475,829.50
Credit to 20011000            $138,475,829.50

Eloise Williams
Enron Global Markets
713-345-1667