Cunningham Microeconomics Mr. G. E. Fitzgerald October 17‚ 2012 Tax Elasticity and Tax Policy No matter what‚ taxes matter. People talk about them‚ complain about them‚ and try to dodge them when they can. Businesses also react to taxes‚ both in how they organize their activities and‚ perhaps‚ in where they carry them out. How people and businesses react in turn affects the level and structure of taxation. The purpose of taxation is to raise revenue to pay for public goods‚ but along the
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Depreciation at Delta Air Lines and Singapore Airlines Acct 531 – Intermediate Finance Acct 1 SECTION 1 – 13WQ Instructor: John V. Merle‚ MBA February 27‚ 2013 Emma Waage Roarke Stone Tim Gould Introduction Depreciation expense is the way that the use of an asset is matched with the revenue that is generated from the asset on the income statement during the time period being reported. Each asset used in a business has a useful life as disclosed by the company’s depreciation
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Accounting Depreciation at Delta Airlines & Singapore Airlines (Solution to Case #2) 24th November‚ 2009 1. Calculate the annual depreciation expense that Delta and Singapore would record for each $100 gross value of aircraft. a. Delta: i. Prior to July 1‚ 1986 the Delta airline assets were depreciated using Straight Line Method at 10% for 10 years for a salvage value of 10%. Depreciation Expense = (Cost of Asset – Salvage Value) / number of year Depreciation Expense
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The word ’Depreciation ’ has been derived from the Latin word ’Depretium ’ which means ’decline in price ’ or ’value ’. Depreciation relates to fixed assets which loose value on account of usage. Therefore ’Depreciation ’ means decline in value of fixed assets on account of usage. Definitions: Depreciation may be defined as the permanent and continuing diminution in the quality‚ quantity or the value of an asset.William Pickles Depreciation in the shrinkage in the value of an asset at a given
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If you do not think the rules/laws are adequate‚ try and come up with some more safeguards. Question #4 - 300 words · Research sales tax laws in Michigan‚ Texas‚ Ohio‚ New Jersey and California. · Discuss what the sales tax rules are in these states. · Describe which states Ellen will have to pay sales tax. · Talk about the percentages/amounts and any other rules/laws she must follow. · Feel free to give ideas on how to track sales from
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Sum of the Years’ Digits Method of Depreciation Sum of the years’ digits method of depreciation is one of the accelerated depreciation techniques which are based on the assumption that assets are generally more productive when they are new and their productivity decreases as they become old. The formula to calculate depreciation under SYD method is: SYD Depreciation = Depreciable Base × Remaining Useful Life Sum of the Years’ Digits In the above formula‚ depreciable base is the difference between
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Definition of Tax Evasion: Tax evasion usually entails taxpayers deliberately misrepresenting or concealing the true state of their affairs to the tax authorities to reduce their tax liability and includes in particular dishonest tax reporting‚ such as declaring less income‚ profits or gains than actually earned or overstating deductions‚. It is an illegal practice where a person‚ organization or corporation intentionally avoids paying his/her/its true tax liability. Examples of practices which
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Depreciation: Airplanes and Garbage Trucks Part I: Airplanes Assume that on January 1‚ 2005‚ each of the three airlines purchases a new Boeing 757 for $75 million. Each airline estimates that the residual value will be 5% of cost. Each airline uses the average depreciation period that is consistent with its policies as stated in the Appendix‚ found on page 3. On January 1‚ 2009‚ each firm sells the plane. First‚ assume that Northwest sells its plane for $55 million‚ Delta sells its plane
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with purchase of new assets comes the frequently heard term i.e. depreciation! All of us must have heard about depreciation and know that it is deducted before arriving at Net Profit. However‚ not many of us are aware of its nitty-gritty’s and the part that it plays in determining the profits of a company. In fact many of us completely ignore analyzing this important parameter. However‚ with considerably flexibility over how depreciation is calculated‚ it is one of the easiest figures to manipulate
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THE IMPLEMENTATION OF A NUMBER OF ARTICLES OF LAW ON ENTERPRISE INCOME TAX NO.14/2008/QH12 AND GUIDELINES ON IMPLEMENTATION OF DECREE NO.124/2008/ND-CP DATED DECEMBER 11‚ 2008‚ DECREE NO.122/2011/ND-CP DATED DECEMBER 27‚ 2011 OF THE GOVERNMENT DETAILING THE IMPLEMENTATION OF A NUMBER OF ARTICLES OF LAW ON ENTERPRISE INCOME TAX Pursuant to the Law on Enterprise Income Tax No. 14/2008/QH12 dated June 03‚ 2008; Pursuant to the Tax Administration Law No. 78/2006/QH11 dated November 29‚ 2006; Pursuant
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