allocation of the asset is shown through the method of depreciation a company uses. The method a company chooses to incorporate should be one that most effectively matches expenses with the revenues produced. The method that most select is that of straight-line depreciation‚ which "spreads the depreciable value evenly over the useful life of an asset." (Horngren‚ Sundem‚ Elliott‚ & Philbrick 2006‚ p.342) Depreciation schedules reflect how much depreciation will be allocated for each year of the assets
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A variety of depreciation methods are used to allocate the cost of an asset to all of the accounting periods benefited by the use of the asset. Your client has just purchased a piece of equipment for $100‚000. Explain the concept of depreciation. Which of the following depreciation methods would you recommend: straight-line depreciation‚ double declining balance method‚ or an alternative method? This concept is to "observe the service life of the equipment with a professional judgment and
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safeguard the collection of taxes in Pakistan 1. Federal Board of Revenue (FBR) By the enactment of FBR Act 2007 in July 2007 the Central Boards of Revenue has now become Federal Board of Revenue. Their work is to enhance the capability of the tax system to collect due taxes through application of modern techniques‚ providing taxpayer assistance and by creating a motivated‚ satisfied‚ dedicated and professional workforce. Governments use different kinds of taxes and vary the tax rates. This
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Differentiating Depreciation Methods Straight-line method of depreciation is where the depreciation is charged as long as you have an asset. However‚ an accelerated method of depreciation is where the depreciation that you have charged the amount will decline over a period of time. In straight-line method in order for you to get the depreciation amount the asset is subtracted from its cost. In the mean time‚ accelerated method is charged in the beginning of the life time but in the end it
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Kendley Fleurentin Career & Financial Management What is tax ? Tax a compulsory contribution to state revenue‚ levied by the government on workers’ income and business profits or added to the cost of some goods‚ services‚ and transactions. People pay taxes every time they get a paycheck. They pay taxes for social security and medicaid. There are many advantages and disadvantages to paying taxes. Some advantages of paying taxes are control inflation ‚ discourage use of harmful products‚ revenue
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CHAPTER 11 DEPRECIATION‚ IMPAIRMENTS‚ AND DEPLETION TRUE-FALSE—Conceptual Answer T F T T F F T F F T T F T F T T F T F T No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20 Description Nature of depreciation. Nature of depreciation. Depreciation‚ depletion‚ and amortization. Definition of depreciation base. Factors involved in depreciation process. Definition of inadequacy. Objection to straight-line method. Units-of-production approach. Accelerated depreciation method
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income of companies‚ it is often called a corporate tax‚ corporate income tax‚ or profit tax. Individual income taxes often tax the total income of the individual‚ with some deductions permitted‚ while corporate income taxes often tax net income which is the difference between gross receipts‚ expenses‚ and additional write-offs. (Rubin‚ 2007) We generally don’t think much about taxes except during the annual tax season. It’s probably the most dreaded time of the year for millions of Americans‚ yet
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considered to show how legalizing and taxing marijuana will put end to this cycle. It is very important to understand the effect of cannabis (marijuana) and its history. Forty-three million American use drugs regularly‚ despite the federal government efforts to enforce the law‚ destroy illegal crops‚ seize illegal drugs‚ make arrests‚ and educate people about the harmful effect of the drugs. Many people feel that crime would be reduced if drugs were legalized. A conversation of how legalization might
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PERCENTAGE TAXES SUMMARY (in ascending order) Rate | Description | 1/2 of 1% (0.005) | * PT /Final tax on shares sold in Local Stock Exchange | 0% | * Dividends/equity shares in Net Income of Subsidiaries | 1% | * IPO on share of stock over 33 1/3% * GR Tax on Banks‚ on interests‚ commissions and discounts with Maturity Period of More than 5 Years | 2% | * IPO on share of stock (25-33 1/3%) * Gas and water franchises | 3% | * PT on Domestic Carriers and Keepers
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total $137‚997. This amount was deducted from the fiscal 2004 income but could not be deducted on the income tax return until paid. At a tax rate of 36%‚ the difference between the income tax expenses calculated on income before taxes on the income statement and the taxes due based on taxable income per the income tax return would be $49‚678. This temporary difference led to the deferred tax assets
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