Deduction Grieve v CIR The deduction of the expense is irrelevant to the resulting net profit. Herald Weekly Times v FCT The cost of the defamation is paid as damage, it is a cost incurred during the operation of business. Deductiable CIR v Mitsubishi Motors NZ Ltd The expense on warranty is deductible, as the cost is incurred at the time of the sale. Case F24: The deduction of the expense of keeping a guard dog is 50%, as it has both business and private use. Case F46: Band musician’s
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------------------------------------------------- Expenses ------------------------------------------------- Salaries Expense $16,000 ------------------------------------------------- Insurance Expense 2,000 ------------------------------------------------- Rent Expense 4,000 ------------------------------------------------- Supplies Expense 1,500 ------------------------------------------------- Depreciation Expense 1,300 ------------------------------------------------- Total Expenses 24
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|CASE: “If the Coat Fits, Wear It” | | | EXECUTIVE SUMMARY Andy Pratt, the founder of The Innovative Sporting Goods Company, had developed a sound technique of making baseball bats and thus the company had gained a national reputation
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are satisfied. Business Expense: the expense must have a business purpose that is unrelated to its tax effect. Gross Income: Only the excess of an individual’s capital investement. The deduction for an item may not exceed the cost. Basis: The cost of an asset or an expense. Represents the max amt of an expenditure that can be deducted as a recovery of capital. Trade or business expenses are deducted FOR adjusted gross income (always) Production-of-income expenses are deducted FROM adjusted
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theft of the asset, it happen when this person manipulate the financial statement with on the December year end reflect an unprecedented jump sales for the month of October (35 percent higher than the same period in the previous year) because travel expenses ends on October 31. Also when sales recorded, the shipping department delivery to the customer without attention from higher management that should check the invoice first before approves. So the person can take the asset and commission without supervision
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3/26/09 Case 4 Better Care Clinic (Breakeven Analysis) Fairbanks Memorial Hospital, an acute care hospital with 300 beds and 160 staff physicians, is one of 75 hospitals owned and operated by Health Services of America, a for-profit, publicly owned company. Although there are two other acute care hospitals serving the same general population, Fairbanks historically has been highly profitable because of its well-appointed facilities, fine medical staff, and reputation for quality care
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1. Using the historical data as a guide, construct a pro forma (forecasted) profit and loss statement for the clinic's average month for all of 2014 assuming the status quo. With no change in volume (utilization), is the clinic projected to make a profit? The below pro forma profit and loss statement states that the clinic is currently operating at a loss of $3,173 per month, considering that subtraction of fixed and variable costs. The contribution margin per month totals $48,138 or divided out
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from a supplier which may be recollect at short notice due to lack a formal agreement, long-term loans instalments are either at a fixed rate or at a variable. Long-term financing allows borrowers to have more security when budgeting for costs and expenses. There are many of long-term financing options, such as mortgages, leases, reverse mortgages, and loan refinancing. This allows more
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activities of a merchandising business different from the activities of a service business. Yes. Gross profit is the excess of (net) sales over cost of merchandise sold. A net loss arises when operating expenses exceed gross profit. Therefore, a business can earn a gross profit but incur operating expenses in excess of this gross profit and end up with a net loss. The date of sale as shown by the date of the invoice or bill. a. b. c. 5. 6. a. 1% discount allowed if paid within 15 days of date of invoice;
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Patient payments: early payers pay 30 days after billing, and late payers pay 60 days after billing. Additional Info. Cont. ● 50% clinical labor costs, general and administrative expenses paid on the 1st, 50% paid on the 15th ● ● Suppliers delivered on 1st, paid for on 5th Miscellaneous expenses are incurred and paid evenly throughout each month ● Term loan payments are made on 15th of the month in which they are due ● Target balance of $50,000 must be in the bank on
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