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- Are all losses realized on the sale of capital assets deductible?Define each of the following terms: i. Capital gain or loss; tax loss carryback and carryforwardWhich option is the correct definition of tax base? Select one: a. Tax base is the amount the asset or liability is recorded at in the accounting records. b. Tax base is a comparing the balance sheet derived using accounting rules with balance sheet that would be derived from taxation rules c. Tax base is the recognition of assets and liabilities in the balance sheet based on the differences between accounting and tax values of assets and liabilities. d. Tax base is defined as the amount that is attributed to an asset or liability for tax purposes.
- How to calculate the indexed cost base for capital gains taxThe value of property for tax purposes, usually a percentage of the fair market value is known as the appraised value. True or FalseExplain why the cost of capital is measured on an after-tax basis why is use of a weighted average cost of capital rather the cost of the specific source of funds recommended?
- What is the valuation allowance for deffered tax assetHow do taxpayers determine whether they should deduct their itemized deductions or utilize the standard deduction? Under what circumstances would you expect the after-tax return from an investment in a capital asset to approach that of tax-exempt assets (assuming equal before-tax rates of return)?Answer also * the total amount of active income and other income subject to regular income tax * capital gain subject to capital gain tax