The immediate and long-term effects of the two event, Accounting Basics

Your client, Hope, of Hope's Country Corner, is curious about two events will influence both taxable and financial income. The first event involves the purchase of pottery-making equipment. Under the present tax laws, the Country Corner can take the entire cost of equipment as an expense on the current year's tax return, while GAAP dictates the equipment be depreciated over its useful live (seven years). The second event relates to a fine levied against the Country Corner by the local authorities when Hope erected an outdoor sign the size of which was in violation of local ordinance. Explain to Hope both the immediate and long-term effects of the two event in causing differences between taxable and financial income.

Posted Date: 3/14/2013 6:37:39 AM | Location : United States







Related Discussions:- The immediate and long-term effects of the two event, Assignment Help, Ask Question on The immediate and long-term effects of the two event, Get Answer, Expert's Help, The immediate and long-term effects of the two event Discussions

Write discussion on The immediate and long-term effects of the two event
Your posts are moderated
Related Questions
list me all the asset in the world?

Shareholders and Investors: as shareholders and the other investors have invested their wealth in a business activity, they are interested in understanding periodically regarding

Amounts paid on June 30 for a 1-year insurance policy. Is this a pre¬paid expense, (2) unearned revenue, (3) accrued expense, (4) accrued revenue, or (5) none of the foregoing.

Q. Explain about Modifying conventions? In certain examples companies don't strictly apply accounting principles because of modifying conventions (or constraints). Modifying co

Q. Illustrate Exchange-price concept? Exchange-price (or cost) concept (principle). The majority of the amounts in an accounting system are the objective money prices determine

“Ledger is said to be the principal book entry and the transactions can even be directly entered into the ledger account.” Elaborate and explain why journal is necessary.

Forms of business organizations Accountants habitually refer to a business organization as an accounting entity or a business entity. A business entity is some business organiz

Bill is an avid angler. His favorite fishing location is Willow Lake, which supports year-round sport fishing. His monthly demand function for fishing at Willow Lake is given by x

A firm has $200,000 in total assets and $120,000 in owner's equity. What are the total liabilities? A. $80,000 B. $200,000 C. $320,000 D. Cannot be determined from the info

Q. Explain FOB shipping point freight collect? FOB shipping point freight collect - Buyer both initially pays and incurs the freight chargers. The proper party (buyer) paid the