When there is no specified agreement in the profit-sharing, what happens to the distribution of the profits/losses? Does it will be divided equally or according to the capital contributions?

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: Which of the following statements is correct?     Earnings and profits are exactly the same as…

A: Amount paid to the shareholders by the company from the profits earned is called dividends. Out of…

Q: If the sale price executes at the price you specified, what would be the total loss, excluding…

A: Sales price when executed at the price specified will be equal to the breakeven price.  Break even…

Q: The following are deductions from items of income, except: *   Cost of sales or service Regular…

A: 1) Cost of sales or service refers to the direct cost of producing the goods sold by a company. It…

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: Why are preferred dividends deducted from net income when calculating EPS? Are there circumstances…

A: Net income is the result of total expenses from the total revenue. EPS is the short form of Earnings…

Q: Does the management of long term assets benefit the business in anyway? Are there tax benefits as…

A: Assets  is a resource which has economic value and gives benefit to the company directly and…

Q: How much gain or loss will Bill recognize on the distribution? What is Bill's basis in the inventory…

A: The calculation of gain or loss on distribution and basis in inventory and capital asset is shown…

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

A: Example of items that would be adjusted directly against equity, rather than being included as part…

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: Which source of investor income is susceptible to double taxation? Interest earned O Dividends

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What is the non-controlling interest in net income?

A: The net income of the subsidiary on multiplying with the percentage of Non-controlling interest(NCI)…

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: What is the impact of deferred annuities in consideration to business matter?

A: The legal contract between any entity and an insurance company is a deferred annuity contract. The…

Q: Will taxable income (or losses) and capital gain (or loss) be shared in the same proportion that…

A: Taxes paid are reported as operating activities, even taxes related to investing and financing…

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: What is the difference between a ‘net capital gain’ and a ‘capital gain, and between a ‘net capital…

A: The question is related to Capital Gain head. Capital gain means any profit or gain arising out of…

Q: Provide an example of items that would be adjusted directly against equity rather than being…

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: Define capital gain (loss)

A: Whenever an asset is sold, the seller incurs either a profit or a loss. The asset may be a real…

Q: How does depreciation give tax benefits? What are the advantages of Internal Financing?

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

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

A: Following are the example of items that are adjusted directly against equity, rather than being…

Q: With respect to transaction and translation gains and losses:   a. transaction gains and losses are…

A: Transaction and translation gains and losses are incurred by an organization operating in…

Q: Do you believe that the cash flows from the sale of an investment should also include the tax effect…

A: Cash Flows in any entity's books reflect the inflow and outflow of cash during a specified period

Q: Compute for the Non-controlling interest in Net Income.

A: Non-controlling interest of a firm means the portion that is not owned majorly by the company which…

Q: How much is the profit attributable to Owner's of the parent and NCI, respectively?

A: Profit attributable to the non controlling interest is the amount of profit over which the parent…

Q: Discuss, using practical why capital ratio is used to share a loss on realization

A: The ratio is used because the partners having more capital is liable for more loss and the partner…

Q: Net capital gain means the excess of the gains from sales of exchanges of ordinary assets over…

A: Capital gain can be defined as the increase in the value of the capital asset. When the selling…

Q: What factors should be consi

A: Debenture   A debenture is a type of debt instrument unsecured by collateral. Since debentures…

Q: No agreement concerning division of net income (equally); (b) Divided in the ratio of original…

A: Introduction:- A partnership is s an arrangement between two or more 'partners' carrying out a…

Q: What is the amount and character of Renata's gain or loss? Renata Corporation has a gain of $ of…

A: Introduction:- Depreciation is an expense. Which is charged on fixed assets over useful life of the…

Q: What is the difference between a contribution income statement and a traditional income statement?…

A: Contribution Income Statement and Traditional Income Statement both are used to ascertain the…

Q: When a business calculates taxable income from gross income, which ofthe following is true? a.…

A: Taxable income is the measurement of income which is used to calculate the amount of tax that needs…

Q: Define each of the following terms: i. Capital gain or loss; tax loss carryback and carryforward

A: The capital gain or loss is computed as the difference in the sale price and purchase price of an…

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

A: Shareholder's equity:   The amount remaining after subtracting company long term and short term…

Q: Provide some example of items which would be adjusted directly against equity rather than being as…

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: If an asset is sold at a gain, why is the gain deducted from net income when computing the netcash…

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Q: Be able to calculate outside basis (or sometimes called Partner Basis) on contribution.…

A: "Since you have posted a question with multiple sub-parts, we will solve the first 3-sub parts for…

Q: Which of the following will cause owner's capital to decrease? Select one: a. Capital b. Profit c.…

A: SOLUTION- DRAWINGS-  IT IS THE AMOUNT TAKEN BY THE OWNER OF A BUSINESS FOR HIS PERSONAL USES . IT…