involved in directing production and business). * Efficiency bonuses for employees: 50 * Personal income tax payable: 150; VAT payable according to credit-invoice method: 250. * Other expenses are deductible. c. Other incomes: * Income from domestic contribution of equity capital to company B; enterprise A receives its share of income before company B pays CIT: 200. * Income from selling a machine with the price of 300, the remaining value of the machine is 20, the transfer expense
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Furthermore, as customers have a certain amount of income, price of the good increases, customers’ preference have to change to corresponding bundles. When price goes up, consumers have to decrease quantities purchasing, therefore their satisfaction level goes down by 1098.48 units. Moreover, instead of imposing a 1% excise tax, government could generate the same amount of tax revenue by imposing an income tax on customers. Comparing imposing income tax and excise tax, we know that
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ACCOUNTING FOR INCOME TAX Aylin Alishahi University of Houston - Victoria Abstract The main idea of this paper is to introduce the concept of Accounting for Income Tax. As part of our discussion, we will understand the meaning of Income Tax and Tax Accounting. We will also look into the different terminologies of GAAP and IRS and the differences between the two. There are two basic kinds of differences between the two – temporary and permanent. In addition to looking at the basic kinds of differences
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1. Income Statement 2. Format of the Income Statement 3. Reporting Irregular Items 4. Special Reporting Issues 1. Income Statement a. Usefulness • Evaluate past performance • Predicting future performance • Help assess the risk or uncertainty of achieving future cash flows b. Limitations • Companies omit items that cannot be measured reliably • Income is affected by the accounting methods employed • Income measurement
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differences between the carrying values of Potential Limited’s assets and liabilities and the respective tax bases. The tax rate is 30 per cent. REQUIRED: Provide relevant journal entries at the end of 2010 and 2011 in accordance with AASB 112 Income Taxes. (6 marks) QUESTION TWO Part A Describe two principle
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calculate the yearly income tax of some individuals. All the incomes are not taxable- the one on which tax is imposed is called taxable income. For example, basic income is fully taxable whereas up to 220,000 house rent income is not taxable. Bonus, commissions, overloads all are fully taxable. In this assignment you will be given the income components and you will calculate the total tax using the following guidelines: How to calculate the yearly income tax? For example the income of one person is
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3. Molteni Motors Inc. recently reported $6 million of net income. Its EBIT was $13 million, and its tax rate was 40%. What was its interest expense? Net Income = $6,000,000 Tax rate = 40% EBT = NET Income/ (1-T) = $6,000,000/ (1-.40) = $10,000,000 EBT = EBIT – Interest Expense EBT = $13,000,000 – $10,000,000 Interest expense = $3,000,000 4. Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had $2.0 million of interest expense, and
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Accounting 301 June 9, 2014 Ethics Case 4 -7 Income statement presentation of unusual loss Financial statements are very important for many participants in the financing reporting process. High-quality financing reporting is necessary to investors and creditors in decision-making process. Their decisions and judgments depend on accuracy of information presented in those statements. For example, investors try to predict future performance based on the company’s current earnings. They want
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550,000 Costs: Fixed Costs $1,170,000 Variable Costs ($45/PD) 1,170,000 Total ($90/PD) 2,340,000 Net Income $ 210,000 Using this information, answer the following two questions: 4. What is the breakeven in patient days for this nursing home, assuming no profit is required? 5. If volume goes up 10% to 28,600 patient days and payer mix is unchanged, what will net income
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Cases in Healthcare Finance Case 11 Solution CASE 11 SOLUTION (8/3/05) Copyright © 2006 by FACHE BANGOR FAMILY PHYSICIANS Pay for Performance Case Information Type This case is nondirected, in that it does not contain a specific list of questions that students must answer. Rather, the case contains general guidance or concerns expressed by various parties that students should consider when developing their solutions. If you, as the instructor, want to convert this case to a directed
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