including goodwill‚ patents and trademarks. Read more: What Is the Difference Between an Asset & an Expense? | eHow.com http://www.ehow.com/info_12085244_difference-between-asset-expense.html#ixzz2Lt18CKe5 2 What is an Expense? Expenses are costs related to running the business. Expenses are deducted from revenue to determine the profitability of a company. Typically‚ the largest expense for a company is cost of goods sold -- raw materials‚ direct labor and other costs related to manufacturing
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Macy had a lot of medical expenses this year that were not covered by her insurance (either due to a deductible‚ co-insurance‚ or co-pay). Her un-reimbursed qualifying medical expenses total $8‚356 and her AGI for 2013 is $45‚000. Assuming she will itemize on her 2013 tax return‚ how much of her medical expenses will she be able to deduct? (5 pts) Medical expenses are deductible to the extent they exceed 10% of AGI. Macy’s AGI is $45‚000‚ so her medical expense "floor" is $4‚500 ($45‚000 X
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$335‚000. There is also an additional added tax of 3% on income between $15 million and $18 1/3 million ($18‚333‚333.33). 1-1. William B. Waugh Corporation—Corporate Income Tax Sales Cost of Goods Sold + Operating Expenses Operating Profits Dividend Income Less 70% Exclusion Interest Expense S-T Capital Gain Selling Price Cost L-T Capital Gain Selling Price (#Shares)(Price/Share) 1000 x $100.00 Cost (#Shares)(Price/Share) 1000 x $80.00 Taxable Ordinary Income $50‚000 25‚000 451‚800 $526‚800 Surtax:
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Includes bargain purchase option. Note: There is a rounding error of $1. PREPARE A SCHEDULE OF LEASE PAYMENTS FOR PURPLE LTD. Note: There is a rounding error of $1. JOURNAL ENTRIES For Lemon Ltd: (Depreciation expense = [$29‚568 - $3‚600] / 5 years = $5‚194) For Purple Ltd: (Net Method) For Purple Ltd: (Gross Method) FINANCIAL STATEMENTS OF BOTH COMPANIES FOR YEAR ENDING 30 JUNE 2009 Lemon Ltd Extract of Financial Statement Note 5: Fees for
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investing/financing events” (Bridgepoint Education‚ 2012‚ Sec. 1.1). Essentially‚ it shows what the company is trading through investments and financial exchanges. 2. Classification of activities Classify each of the following transactions as arising from an operating (O)‚ investing (I)‚ financing (F)‚ or noncash investing/financing (N) activity. a. ___I_____ Received $80‚000 from the sale of land. b. __ O_____ Received $3‚200 from cash sales. c. ___F_____ Paid a $5‚000 dividend. d. ___O_____ Purchased
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stock has risen to near record highs (Starbucks Corporation – Finance). Like many chain stores‚ Starbucks classifies its leases on retail stores‚ roasting and distribution facilities and office space as "operating leases." FASB Standard No. 13 says that a lease may be classified as an operating lease only if it meets the following four criteria: the lease life does not exceed 75% of the estimated life of the asset‚ there is not a transfer of ownership to the lessee at the end of the lease term‚ there
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Depreciation:- accumulated depreciation is an asset‚ so it will increase with a debit. Why adjusting entries are prepared give some reasons? Answer: Adjusting entries have to be made because a company’s assets‚ expenses‚ and liabilities never stay the same from one accounting period to another. I will try to give you at least two examples of why adjusting entries must be made. Example 1. A customer purchases items on account for the amount of $500. When the sale is first made the company
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Chapter 3 Analyzing Bank Performance 1. Which of the following is not a characteristic of a typical commercial bank? a. Most banks own few fixed assets. b. Most banks have a high degree of operating leverage. c. Most banks have few fixed costs. d. Many bank liabilities are payable on demand. e. Banks generally operate with less equity capital than non-financial firms. Answer: b 2. Bank assets fall into each of the following categories except: a. loans. b.
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Intengible Assets (patent) | $ 125‚000 | | | | Cash | $ 375‚000 | | | | Shareholder’s Equity | | $ 500‚000 | | | Establishmnet of Chemalite‚ Inc. | | | 1/15/2003 | 2 | Incorporation Expenses | $ 7‚500 | | | | Cash | | $ 7‚500 | | | Expenses like legal fees‚ charter costs...etc | | | 6/15/2003 | 3 | PP&E | $ 62‚500 | | | | Cash | | $ 62‚500 |
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the Year Ended December 31‚ 2009 | Sales revenue | | $360‚000 | Less: Operating expenses | | | Salaries | 180‚000 | | Employment taxes and benefits | 34‚600 | | Supplies | 10‚400 | | Travel & entertainment | 17‚000 | | Lease payment | 32‚400 | | Depreciation expense | 15‚600 | | Total operating expense | | 290‚000 | Operating profits | | $ 70‚000 | Less: Interest expense | | 15‚000 | Net profits before taxes | | $ 55‚000 | Less: Taxes
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