List two circumstances in which obtaining capital allowances on the reducing balance basis is more beneficial than on the straight-line basis

Q: TRUE OR FALSE? In computing for the comprehensive income, the net remeasurement gain on defined…

A: Other Comprehensive income is added to Net income to arrive at Comprehensive Income. Comprehensive…

Q: Sometimes a temporary difference will produce future deductible amounts. Explain what is meant by…

A: The future deductible amount caused by temporary difference means that the taxable income can be…

Q: a)  Explain the difference between: Capital expenditure and revenue expenditure, giving an example…

A: Capital Expenditure: It is a expenditure made by company to acquire or renovate a property, plant or…

Q: the difference between capital expenditure and revenue expenditure.

A: Expenditure is defined as spending money on something. This can be a cash payment or the exchange of…

Q: For tax purposes where interest expense on margin loan is deductible for investment purposes , can…

A: To determine the prorated deductibility of interest expense on a margin loan, you need to understand…

Q: a. In your own words, describe two of the ways in which REITS can increase their income

A: REITs are a kind of publicly traded real estate securities. They are tax-advantaged trusts and are…

Q: The coinsurance penalty promotes which of the following? Application of the deductible All of the…

A: Coinsurance penalty Coinsurance is a fine that the insurance company imposes on the policyholder if…

Q: Explain intraperiod tax allocation.

A: Income tax allocation is an integral part of generally accepted accounting principles. Income tax…

Q: Explain why the cost of capital is measured on an after-tax basis why is use of a weighted average…

A: This question consists of two subquestions i.e.  (a) Explain why the cost of capital is measured on…

Q: What is  internal Rate of Return - Before Tax Cash Flow - BTIRR?  Please provide example.

A: Before tax IRR (BTIRR) is the IRR calculated on the before tax cash flows. Here, the before tax cash…

Q: Discuss, using practical example how revenue expenditure should not be capitalized?

A: SOLUTION- Thus, a revenue expenditure which increases the utility or productive capacity of an…

Q: What is the difference between active income, passive income and portfolio income? Provides examples…

A: Active Income Income earned while providing a service is referred to as active income. Examples of…

Q: Describe the Replacement Analysis with Tax Considerations?

A: Introduction: Capital budgeting is one of the important techniques used to determine the value that…

Q: Explain Initial Capital Contributions with example?

A: Initial contributions are generally made by members to take part in the company's interests. Many…

Q: Evaluate in terms of the framework, why it is appropriate to capitalize borrowing costs under…

A: Borrowing prices are interest-associated alternative costs that an entity incurs in reference to…

Q: An example of investment income that would be subject to the net investment income tax is: A. Rental…

A: Answer:-  Net investment income:- For the taxation purpose net investment income is the total…

Q: It can be said that the actual cost of an expenditure that is deductible for tax purposes is less…

A: Tax payable is the amount that is to be paid by the tax payer to the tax receivable individual or…

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

A: Capital allowances are tax deductions that businesses can claim on their capital expenditures, such…

Q: Taxation can be used to reduce the welfare loss arising from a negative externality. Select one: O…

A: True

Q: What is a Capital Gain Tax (CGT) Asset? Give at least one example for each of the three types of…

A: Capital gain tax asset is an asset which when sold, the gain will attract capital gain tax.  As per…

Q: Explain with hypothetical example the effect of Investment Tax Credit.

A: Investment Tax Credit is an opportunity provided while filing for taxation where a deduction of a…

Q: Which of the following costs is a nonlease component for the lessee?    taxes  maintenance…

A: The objective of the question is to identify which of the given costs is considered a nonlease…

Q: What are annuities received? Also, how does the calculation of expected return and the calculation…

A: It is considered as a payment stream of an equal amount which would likely occur at a regular time…

Q: Define intraperiod tax allocation. Why is the process necessary?

A: Intra-period tax allocation:   It is the allocation of an organization’s total income tax expense…

Q: Explain, using practical example how Capital expenditure should be capitalized?

A: Capital expenditure can be defined as an expense made for the purchase of a long-term physical or…