Build SDE from the records, not from a list

Seller's discretionary earnings starts with a defined source profit and reverses specified financing, tax, noncash, nonoperating, nonrecurring, and one-owner compensation items. It is not a universal add-back list, distributable cash, or a company value. First identify the exact statement, entity, period, and starting line; then give every adjustment an amount, sign, ledger source, supporting record, recurrence test, offset check, and status. Reconcile seller's discretionary earnings from one source period with an entity-aware workpaper, a fictional example, evidence statuses, and clear limits. Seller's Discretionary Earnings:…