capital gain and taxable income of $35‚000. If taxpayer collects the entire $10‚000 during the current year‚ $8‚000 needs to be included in gross income. True False 4. A cash basis taxpayer must include as income the proceeds from the sale of an account receivable to a collection agency. True False 5. If an account receivable written off during a prior year is subsequently collected during the current year‚ the amount collected must be included in the gross income of the current year
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Income Elasticity of Demand Income elasticity of demand may be defined as the ratio or proportionate change in the quantity demanded of a commodity to a given proportionate change in the income. In short‚ it indicates the extent to which demand changes with a variation in consumer’s income. Practical application of income elasticity of demand 1. Helps in determining the rate of growth of the firm. If the growth rate of the economy and income growth of the people is reasonably forecasted‚ in that
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Mrowicki 4-7-2014 Minimum Wage Income inequality in America has become a big issue‚ one that many of us hear every day; whether on the news or from our parents. But normally‚ we don’t hear the actual phrase used. We hear things like “the top two percent‚” or‚ the “rich vs. the poor.” So‚ what is income inequality? Income inequality is defined as the difference between individuals or populations in the distribution of their assets‚ wealth‚ or income. So‚ with that in mind‚ why would
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As per the Income Tax Act‚ 1961 where a person dies‚ his legal representatives shall be liable to pay any sum which the deceased would have been liable to pay if he had not died‚ in the similar manner and to the same extent as the deceased. As per section 159 of the Income Tax Act‚ 1961 (Act)‚ even when a person dies‚ the assessment of his income is to be done upto the time of his death. So‚ the legal representative of the deceased has to file the income tax return for the income on which the deceased
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distribution of income is to achieve economic equality‚ which is to give every citizen the opportunity of earning a decent living. However‚ our current system’s inability to better allocate the resources we have at our disposal has widened the gap between the wealthy and the poor especially during the past 20 years. The primary benefit of the distribution of income is to transfer wealth‚ with the help of the government‚ to those who are less fortunate. The current distribution of income is a cost to
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INCOME TAX NOTES Residential Status and Incidence of Tax According to Section 5 of the Income Tax Act the scope of total Income of an assessee depends on his residential status.On the basis of residential status assessee are classified under the following two categories: 1. Resident 2. Non-resident. As per as resident individuals and Hindu Undivided Families are concerned‚ they can be further divided into two categories: 1. Ordinarily Resident 2. Not ordinarily Resident. Residential
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Definition of Tax “Taxes are compulsory payment to government without expectation of direct return in benefit to the tax payer” According to section 2 (62) of the ITO (Income Tax Ordinance) 1984: “Tax means the income tax payable under ordinance and includes any additional tax‚ excess profit tax‚ penalty‚ interest‚ fees or other charges leviable or payable under this ordinance.” Characteristics of Tax i. Tax is a payment to the government by the people. ii. Payment of taxes is non-penal
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Income Inequality Gap Over the years America’s inequality income gap has been growing‚ between the rich and the poor. There are many reasons why this is happening. Andrew Carnegie‚ John Kenneth Galbraith and Joseph Stiglitz may agree with me‚ but believe there are different reasons why and how it should be dealt with. I would have to say that I agree that Galbraith’s idea is what is better for America now. In the essay “The Gospel of Wealth” Andrew Carnegie says that the rich should invest
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healthcare‚ income inequality and poverty. Time to time changes in policies have been made‚ perhaps to improve these issues‚ however‚ the gap between rich and poor keeps increasing and there is very little improvement in healthcare and the economy. In fact‚ healthcare keeps on becoming costly. Major issues like income inequality and poverty are not being taken care of by the government. According to Dr. Raphael (2002) poverty is caused by several reasons such as inequality in people’s income‚ weak social
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Balance Sheet and Income Statement Commentary Michael Turner BSA 500 – Business Systems I July 24‚ 2013 Simon Chen Balance Sheet and Income Statement Commentary Balance Sheets and Income Statements is an approach to review the overall financial status of the company. We will be reviewing four companies in different industries’ balance sheet and income statements. With a technique to combine the statements we will be able to evaluate the companies’ income‚ expense and stockholder’s equity in the
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