“wholly and exclusively for the purpose of the business” – what kind of expenditure does it exclude? What do you understand by the terms “remoteness” and “duality of purpose”? The phrase” wholly and exclusively for the purpose of business” would means the taxpayer or company sole purpose for incurring the business expenditure is only for their trade or business. Any purposes that not related to trade or that if the business expenditure would consist of two or more business purposes would not qualify
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Situational Analysis and Problem Definition: The Shouldice Hospital in Ontario‚ Canada is a pioneer in the field of treating patients suffering from external abdominal hernias. With its current capacity‚ it can treat up to 6850 patients annually. The patients are treated using the Shouldice Method‚ and on an average each patient has to spend about four days in the hospital recuperating. The USP of the Shouldice Hospital is it’s distinct surgical procedure. The speedy ambulation coupled with it’s
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(a) Calculate autonomous expenditure‚ the multiplier and equilibrium GDP demanded. (30 Marks) a.) The Autonomous Expenditure is the sum of investment‚ government expenditure and exports‚ which does not vary with real GDP. (ref. 1) According to the table‚ the autonomous expenditure = C+I + G+ X= 10 +17+12= £84 (billion) (fig 2) Multiplier= 1/ 1- slope of AE= 1/1-0.72= 3.57 The equilibrium GDP demanded is when the real GDP is equal to Autonomous expenditure. Therefore‚ from the calculation‚ the
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Aggregate Expenditure: relationship showing (at a given price level) Real GDP. * Y=C+I+G+NX Consumption Function (C): A relationship between disposable income (income-tax) and consumption * C=a+b(Y-T) * a-autonomous spending * b-MPC * Y-Aggregate expenditure * T-net taxes (tY) * Marginal Propensity to Consume (MPC) * Δ consumption/Δ disposable income * Marginal Propensity to Save (MPS) * Δ savings/ Δ DI * DI-MPC=Savings * MPS+MPC=1
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Software Licenses‚ Capital Expenditures‚ and Licenses Maintenance. I included Licenses Maintenance expenses as capital expenditure in the rationale that these are the expenses needed to keep Software Licenses works‚ and does contribute to future operations and create economic value to the company. Depreciation and amortization schedules for tax and reporting purpose are assumed to be same‚ which is 5-year-straight-line method. At the bottom of Exhibit 2‚ Total Capital Expenditures and Total Depreciation
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From the Desk of: Imran Omer Case Study: WorldCom From its beginnings as a long distance call player to handler of Internet data traffic‚ WorldCom was a spectacular firework in the sky before it crashed out as one of the biggest bankruptcies America has witnessed in its corporate history. WorldCom carried more international voice traffic than any other company. It carried a large amount of the world‟s Internet traffic. WorldCom owned and operated a global IP (Internet Protocol) backbone that
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Refection Economic Forecasting Week 2 Refection Economic Forecasting In week two we gathered a list of resources that you might use to gather historical economic data as well as economic forecast data. 1. US Census http://www.census.gov/ 2. FRED http://research.stlouisfed.org/fred2/source?soid=18 3. Bureau of Economics Analysis http://www.bea.gov/ 4. National Association of Federal Credit Unions http://www.nafcu.org/research/weblinks/ US census source contains records of all historic
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Chapter 9 Practice Problems S9-2. Asset Market Value Percentage of Total Value × Total Purchase Price = Assigned Cost of Each Asset Land $ 80‚000 $80‚000 / $160‚000 = 50% × $150‚000 = $ 75‚000 Building 60‚000 $60‚000 / $160‚000 = 38% × $150‚000 = 57‚000 Equipment 20‚000 $20‚000 / $160‚000 = 12% × $150‚000 = 18‚000 Total $ 160‚000 100% $ 150‚000 Date Accounts and Explanation Debit Credit Land 75‚000 Building 57‚000 Equipment 18‚000 Notes Payable 150‚000 To record
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ce cream cakeMission * Business solution sales growth by 50% on a year to year basis. * To be a globally competitive company. * Maintain the cleanliness and orderliness for the best quality in our products. * To satisfy the costumers taste buds. Vision * Great business insight and continuous business development. * Best quality product. Goals and Objectives * To serve the costumer quickly. * Make a customized ice cream cakes based on the desire of the costumer
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Explain the effects of an increase in aggregate demand. Aggregate demand is a term used by economists to denote the total spending on goods and services produced in an economy. Aggregate demand consists of four elements: consumer spending‚ investment expenditure‚ government spending and the net expenditure on imports and exports. From a Keynesian economist’s perspective‚ they would state that an increase in aggregate demand when the economy is at full employment will be purely inflationary. However
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