Exam #3 ACNT 1331 Spring 2012 | | 1. Terry Trumbull purchased a tract of land. In order to have city water, he had to pay the water company $5,000 to extend the water line to his property. The $5,000 cost is an addition to the basis of the land. a. True b. False Answer: _____ 2. The basis for nonbusiness property changed to business use is the greater of the adjusted basis of the property or its fair market value on the date it is converted to business use. a. True b. False
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How do We Create Jobs in the United States? By Ronald W. Spahr Everyone, including politicians and economists, agree that we need to create more jobs in the United States; however, significant disagreement exists among these groups on how best to achieve this goal. Many economists, especially those currently in Washington, believe that job creation begins with increasing the demand for goods and services, the demand side, espousing remnants of Keynesian economics. However in
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The Weighted Average Cost of Capital is the average of the costs of a company's sources of financing-debt and equity, each of which is weighted by its respective use in the given situation. By taking a weighted average, it shows how much interest the company has to pay for every marginal dollar it finances. A firm's WACC is the overall required return on the firm as a whole and, it is often used internally by company directors to determine the economic feasibility of expansionary opportunities and
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With trillions of dollars in cash sitting on their balance sheets, corporations have never had so much money. How executives choose to invest that massive amount of capital will drive corporate strategies and determine their companies’ competitiveness for the next decade and beyond. And in the short term, today’s capital budgeting decisions will influence the developed world’s chronic unemployment situation and tepid economic recovery. Although investment opportunities vary dramatically across
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Making big decisions is not easy; in fact it might be one of the most difficult things we ever have to do. The tendency is to postpone decisions as long as we can and put of the pain. Deciding to not make a decision is a choice in itself. This particular case study is a problematic one, because there are many concerns to think through when trying to improve a budget Issues Kimu County’s economy is weakening due to reductions in federal and state grants, disapproved court decisions to increase spending
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Question 1 Date | Account Name | Dr | Cr | 1-Apr-12 | No entry required until shares are allotted | | | | | | | 30-Apr-12 | Cash Trust | 1,700,000 | | | Application | | 1,700,000 | | | | | 5-May-12 | Application | 1,700,000 | | | Share Capital | | 1,500,000 | | Allotment | | 200,000 | | Cash at Bank | 1,700,000 | | | Cash Trust | | 1,700,000 | | | | | 8-May-12 | Cash at Bank | 550,000 | | | Allotment |
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to the corporation for the value of the assets. This is based on the fair market value of the property. Corporations can be organized as C or S corporations. One of the differences between the two is that the C corporations are subject to double taxation, while S corporation are considered a flow-through entity. The income earned by the C corporations is taxed at corporate level and again at the shareholder level when income is received. The distribution of income at the shareholder level can be
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CONSULTAFRIC PARTNERS EY is a global leader in assurance, tax, transactions and advisory services. Locally, we are committed to doing our part in building a better working world for our people, for our clients and for our communities. Globally, we are also united by our shared values, which inspire our people worldwide and guide them to do the right thing, and our commitment to quality, which is embedded in who we are and everything we do. Advisory Services Who we are One business, one Advisory practice
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Table of Contents 1.0 Introduction 1 2.0 Discussion 2 2.1 Exploration and Development costs creates a Deferred Tax Liability 2 2.2 Analysis on arguments by directors 3 2.2.1 No Income Tax Expenses 3 2.2.2 No deferred tax liability 4 2.2.3 Tax losses 5 2.3 Information utility to users of financial report of deferred tax liabilities 6 3.0 Conclusion 7 References 8 1.0 Introduction Accounting Standard AASB 112 (Income Taxes) prescribe the accounting treatment for income taxes
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Executive Summary With a rapidly growing economy and the multitude of organisations that exist in Australia, there is a great need for consistency and regulation when it comes to accounting. The AASB (Australian Accounting Standards Board), has set out such guidelines known as “accounting standards” which govern how businesses should be recording their financial reports. These range from the recording of share-based payments to agriculture of the business. There are three main benefits of a
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