SECTION 205 Page 1 of 6 SECTION 205 DIVIDEND TO BE PAID ONLY OUT OF PROFITS Dividend declared at extraordinary general meeting of company - Whether permissible The query has been raised whether a company is prohibited from declaring a further dividend at a general meeting of a company other than the annual general meeting after a dividend had already been declared at an annual general meeting. Such a situation could arise‚ for example‚ when after declaring a dividend at an annual general meeting
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transportation‚ etc.) to expenses that can best be categorized as adjustments to gross income (moving expenses‚ student loan interest‚ etc.). The chapter also discusses how capital expenditures are allocated across multiple taxable years in the form of depreciation‚ amortization‚ depletion‚ etc. Categories of Allowable Deductions ¶6001 Classification of Tax Deductions Four categories of tax deductions are allowable to individual taxpayers: (1) trade or business expenses (including the business-related expenses
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clearly all of the accounting changes Harnischfeger made in 1984. -In 1984‚ there was a switch from accelerated to straight line depreciation retroactively. Because of this‚ the depreciation expense decreased. -The estimated depreciation lives on certain U.S. plants‚ machinery and equipment changed. The economic life of these assets was increased‚ so the depreciation expense was lowered. -There was an improvement in the minimum pension benefit. This change produced a lower pension expense. -The
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using the straight line method Depreciation for the first year $300‚000/5 = $60‚000 Question 1 using double declining 2/5 * $300‚000 = $120‚000 Straight line method is the simplest method of calculating depreciation. The amount charged each year over the useful life of the asset is uniform. Companies add up all the costs incurred to bring the asset in use. After cost are added the value is divided by useful life of the asset in years so as to come up with the depreciation expense. The important characteristic
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Accounting Assignment #434 Best Friends Vet Clinic Part A Qantas Airline Short Report in accordance to Accounting Perspective Introduction On November 14‚ 2012‚ Qantas applied a capital management measure by 1) repaying its $650 million debt earlier than scheduled and 2) investing up to &100 million in an on-market share buy-back. This was fulfilled to reflect the Board’s goal: returning shareholders’ value‚ maintaining a strong balance sheet while still have the flexibility to
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indicate the proper accounting treatment of those items that are not included in the cost of the equipment. c. Compute the total cost debited to the college’s Equipment account. d. Prepare a journal entry at the end of the current year to record depreciation on the exercise equipment. Podunk College will depreciate this equipment by the straight-line method (half-year convention) over an estimated useful life of 4 years. Assume a zero residual value. Problem 9.2A Comparison of Straight-Line and
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Date | Description | | | | | | | | | | | | | Note: For further guidance please consult your supervisor or custodian of this document. Scope The purpose of this document to outline policies for management of assets i.e. depreciation‚ appreciation‚ amortization‚ stocktaking and accounting proceed from disposal. Policies 1. Stocktaking‚ Sale‚ Loss/damage‚ write-off‚ and revaluation of assets 1.1. Stocktaking of assets will be carried out by the Administration on yearly
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of 5 years and a $10‚000 residual value. Calculate depreciation expense and the year-end book value for 2010 and 2011 using the double declining-balance method of depreciation. *$120‚000 = $300‚000 2/5 **$72‚000 = $180‚000 2/5 Exercise 3: Hubbard Company purchased a truck on January 1‚ 2009‚ at a cost of $34‚000. The company estimated that the truck would have a useful life of 4 years and a residual value of $4‚000. A. Calculate depreciation expense under straight line and double declining balance
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Decrease in Prepaid Expenses 4‚000‚000.00 Increase in Accounts Payable 1‚000‚000.00 Decrease in Accrued Liabilities -2‚000‚000.00 Decrease in taxes payable -5‚000‚000.00 Increase in Deferred Taxes 5‚000‚000.00 Depreciation 11‚000‚000.00 Net cash provided by operating activities 1‚000‚000.00 Investing Activities
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indirect method of operating cash flow. The largest adjustment to net income for both companies was the depreciation and amortization expense. In 2006 the net cash provided by operating activities for General Mills was $1‚771 millions‚ which was an increase of $60 millions from the $1711 millions in 2005. The largest adjustment to convert accrual net income into cash from operation was depreciation and amortization expenses totaling $424 millions in 2006. As for Kellogg’s in 2006 the net cash provided
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