Capital losses are different ordinary losses in that the former may only be claimed by corporate taxpayers. O is subject to the rules on holding period. maybe carried over to the next subsequent three (3) taxable years if unuti maybe deducted from capital gains or from ordinary gains.

Q: List two circumstances in which obtaining capital allowances on the reducing balance basis is more…

A: Depreciation is the reducing value of an asset, If we buy something from the market or any fixed…

Q: How are the Capital al losses deducted from capital gains?

A: When an asset such as property for investment purpose (not for personal use), cars and investment…

Q: Which of the following is taxable compensation?  A. Commissions B. Honoraria C. Gains on exercise…

A: Taxable Compensation / Income - It is the amount of money earned during the particular period upon…

Q: Confusingly, §1221 defines what is not a capital asset. True False

A: Capital Assets:All property that taxpayers own is capital asset, unless it falls into one of the…

Q: The principal difference between two concepts of capital maintenance is the treatment of the effects…

A: CAPITAL: Capital refers to the assets used for the production of goods and services. A typical…

Q: What are arguments for and against preferential treatment of capital gains?

A: Capital gain defined as the increase in the value of the capital asset and it is realized when the…

Q: fair value model for investment property differ from the revaluation model for PPE

A: Fair value model and revaluation model are methods of valuation of non-current assets as per…

Q: Why is the distinction between paid-in capital andretained earnings important?

A:

Q: The gains are commonly known as depreciation recapture. True or false?

A: Depreciation Recapture means a procedure adopted by USA Internal Revenue Service to collect taxes on…

Q: Except for _________, losses from the sources listed below are not regarded as capital losses.…

A: An capital loss is a loss that results from the decline in value of a capital asset, such as an…

Q: When there is no specified agreement in the profit-sharing, what happens to the distribution of the…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Q: Is taxable interest income generated via active or passive investments, or through a portfolio of…

A: The Answer

Q: Loss on fire is included in the computation of net income.

A: Net Income: Gross revenue less cost of goods sold, selling, general and administrative expenditures,…

Q: some examples of items that would be adjusted directly against equity, rather than being included as…

A: The items included in other comprehensive incomes are not considered under profit or loss account…

Q: How can we determine ordinary gains and capital gains?

A: Answer: In the course of normal business, an ordinary gain is income. The gain or loss of foreign…

Q: The losses from the following sources are considered non-capital loss except _________. Business…

A: Answer with explanation are as follows.

Q: What are the advantages and disadvantages of the three primary ways capital is transferred between…

A: Direct transfer: Advantage: Company can save underwriting commission or spread when direct transfer…

Q: The modified internal rate of return (MRR) test is designed to address a limitation associated…

A: The question is asking about the limitation of the internal rate of return (IRR) that the modified…

Q: adjusted directly against equit

A: Equity refers to the stake of shareholder's in the company. The formula for calculating equity of…

Q: is the temporary differrence of depreciation between financial accounting and taxation puposes…

A: In accounting, a temporary difference is a difference between an asset or liability's carrying…

Q: Which of the following cases would result in an actuarial loss? Projected benefit obligation…

A: As per IFRS, Actuarial gains and losses are changes in the present value of the defined benefit…

Q: Demonstrate the computation and allocation of consolidated net income in the presence of a…

A: Non Controlling interest or Minority Interest is the ownership interests in the subsidiary that are…

Q: Explain the method of direct capitalization method?

A: The three approaches to value a business or an investment are the Income based,  Market based and…

Q: When should an expenditure be recorded as an asset rather than an expense? O Never O When future…

A: Lets understand the basics.When any expense which is going to have future benefits needs to…

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.