What is the difference between a ‘net capital gain’ and a ‘capital gain, and between a ‘net capital loss’ and a ‘capital loss’? Are net capital losses deductible?

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: What is capital gain taxation?

A: Introduction:- Capital gain tax charged on Profits from the sale of an investment.

Q: What are the Gain Taxes on Asset Disposals?

A: When a asset is disposed, if the value realised on such disposal is more than the carrying amount of…

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

A:

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: 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: True or False Any net income obtained from selling a depreciated property according to its last…

A: Fixed assets are those assets which are held by the business for longer period of time. Depreciation…

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: How can the Gains and Losses on Depreciable Assets be determined?

A: For calculation of gains or losses on depreciable assets, written down value of the assets at the…

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 tax treatments of assets affects the risk structure of assets True False

A: The composition of a company's asset helped in determining how the balance of long-term credits and…

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: What is a capital asset?  Why do we care about the treatment of assets as either capital or…

A: Capital assets is an assets which are generally not meant for sale but for investment purpose which…

Q: What is the relationship between depreciation and net income?

A: Depreciation is the part of cost of a asset which is charged to income statement yearly as a expense…

Q: How much is the total expense? How much is the net income? What is the balance of the ending…

A: Accounting equation of the business says that total assets must be equal to total liabilities and…

Q: gain from the sale or exchange of property which is not a capital asset

A: Second option is wrong because gross income is the income before allowing deductions. Third option…

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: To arrive at the accumulated taxable income, which of the following items does not represent a…

A: The Accumulated Adjustments Account (AAA) is a balance sheet account that contains the net…

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: 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: The amount to be capitalized should be:

A: Answer:   Option a.

Q: Is the nature of the gainor loss considered ordinary or long-term?

A: Ordinary gain or loss means any income which doesn't result as Capital gain or loss. Capital Gain or…

Q: Difference between the tax treatment of the purchase of a capital asset, such as a machine vs the…

A: There are various types of expenses which is incurred by the businessman in order to conduct it…

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: 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 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: Net Capital gain is an item of income, while net capital loss is not an item of deduction. a.true…

A: Net capital gains is the gain that arises when the net long term capital gain is more than net short…

Q: Illustrate the significance of depreciation and income taxes?

A: Depreciation is the charge against the usage, wear and tear or obsolescence of the asset in the…

Q: What are the benefits of calculating depreciation differently for financial reports and for tax…

A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…

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: Ordinary gains includes capital gains such as those from the performance of services whehter…

A: Ordinary gains and capital gains are the two kinds of accounting profit which arises from business…

Q: Is Property Dividends qualify as Revenue?

A: Property dividends refer to the dividend which stands as an alternate to dividends payable in cash…

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: According to our authors, what is an unrealized gain and unrealized loss?

A: In a general view gains and losses are the outcomes of investing which are inevitable. A gain or…

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: Taxable dividend income in the amount of $ Return of capital in the amount of $ Capital gains in the…

A: First, calculate the deficit on June 30: Deficit on June 30=Deficit in current…

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…

Q: The income tax rates are the same for capital gains and depreciation recapture of an asset that is…

A: The question is related to true or False.The income tax rates are the same on capital gains and…