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Research Paper: Tax

Research Paper: Tax

Introduction

Generally, depreciation refers to an annual deduction of tax that permits a company or organization (ABC) to recover the cost of a property (in this case, the research facility). It allows for tear and wear, and deterioration as well as obsolescence (Internal Revenue Service, 2014; Financial Web, 2015). In this regard, ABC has some room for depreciation on the grounds of obsolescence. It makes sense that ABC settles on depreciation as a strategy to avoid losing too much in the taxation of the facility, which will be of no value in just five years. According to Continue reading...

RE: Taxation of Antique Instruments

Facts
James Figaro is a professional musician who plays the violin and operates as a self-employed individual in this industry. He also performs in an orchestra and also provides private music lessons to a small class of selected students as part of his commercial music business activities. Since his specialty is in stringed instruments particularly the violin, James has recently purchased a set of antique instruments that he intends to use in his trade. This set is comprised of a fine antique bow and a corresponding fine antique violin.
Since James is a professional music player of the violin, Continue reading...

Straight-line and double declining depreciation methods

Straight-line depreciation method is a method that assigns an equal amount of depreciation for a fixed asset for each of the years of the asset’s useful life. Under this method, depreciation is determined by dividing the cost of the asset net of salvage value, with the number of years of useful life. In addition, a fixed percentage can be used for each of the years.
Double declining depreciation method is an accelerated depreciation method that assigns more depreciation in the early years of a depreciable asset than in the last years of the asset’s useful life. It Continue reading...

Introduction

According to the international journal of economics sciences reports, the official exchange rate is the exchange rate system that is mostly accepted and provided by the national authorities and officers to legally sanctioned exchange systems in the market. In most cases, it is calculated as an annual average rate especially in terms of monthly local currency units such as U.S dollar. Historically, after the fall of the Bretton Wood systems in early 1971, majority of global industries and economies including Turkey adopted a fixed exchange rate especially the use of monetary policy systems. Despite this, the volatility of monetary Continue reading...

Question 1: NZ FRAMEWORK

Qualitative characteristics
Characteristic 1: Relevance
Good accounting information should be relevant. Information is considered relevant when it can influence the decision of the users of accounting information (Norton & Porter, 2011). This implies that the inclusion of the information should make a difference in the decision of users. Information can only be relevant if it is timely, has a predictive and feedback values.

Characteristic 2: Reliability:

Information should be free from bias and material errors in order to be depended upon by the users as faithfully representing the intended purpose (Needles & Powers, 2013).

Characteristic 3: Understandability:

Accounting information should be presented in a manner that it Continue reading...

Part A: Journal Entries to record accounting transactions

1. On December 31st the company sells on credit $5,000 of goods which had been bought a month previously at a cost of $3,500:

Debtors A/cDr5000

Cost of Goods Sold.Dr..3500
2. On December 31st the company sells an unwanted machine for $1,500. The machine was bought at the beginning of 2012 for $8,200 and was expected to be used for three years after which its value had been forecast to be $1,000.

Cash A/c.Dr 1500

Depreciation of Machinery A/c..Dr 4800

Loss on Sale of Machinery A/c Dr.1900

3. On January 2nd the company paid $500 by check for a three year buildings insurance policy.
Insurance Premium Continue reading...

Cash flow statement

Comparison of income statement and statement of cash flows
The income statement indicates the results of the operating activities of Nybrostrand Company for the year ended December 31, 2012. It shows total revenues as well as the cost of goods sold thereby giving the value of gross profit. The income statement also includes all the operating expenses incurred by the company during the year. The income statement gives no consideration to whether the expenses are cash or non-cash expenses. As shown above, the company’s expenses included depreciation, property taxes, marketing, insurance, utilities and rent expenses. The income statement Continue reading...

and the Money Markets Between Two Countries

Introduction

Barry W. Ickes states that if there were the sole currency in the world, foreign exchange markets would not exist (1).
Since the ancient times people and countries are known to have dealt with the matters of exchanging their national (domestic) currency (tender) for the foreign one. What forced them to buy foreign notes? Practically, every country in the world tends to produce certain goods or services some portion of which is exported to the other country (trading partner) due to the demand for these products in the other country. Nowadays this Continue reading...

Chapter 9

A fully depreciated asset refers to an asset whose accumulated depreciation is equal to its initial cost less the salvage value. Lakeland Corporation will still record the fully depreciated asset and include it under non-current assets in the balance sheet. The company should report the asset on the balance sheet at its cost. In addition, the Corporation will record and present the accumulated depreciation for the asset in the balance sheet. However, the corporation will no longer charge any depreciation expense on the asset. Therefore, no depreciation on the fully depreciated asset will be included in the income statement.

Goodwill

Continue reading...

Income Statement

Revenue Recognition
Revenue recognition remains one of the most important principles of accrual accounting. The principle holds that reporting of revenue must be during the period in which the revenue generation takes place. Such aids in the determination of the accounting period for which the recording of revenue and expenses must occur. According to the general rules of the revenue recognition principle, financial records ought to indicate the revenues once delivery for the exchange of goods and services is complete. In some cases, the payment of goods or services may occur in the same period of their delivery. In Continue reading...