Asked in Mergers and Acquisitions
Why would there be negative goodwill on a purchaser's income statement rather than the seller's income statement?
Goodwill can be negative and arises where the net assets at the date of acquisition, fairly valued, exceed the cost of acquisition. Negative goodwill is recognized as a liability. ...
Asked in Business & Finance, Definitions
Do you get capt gains treatment on sale of goodwill?
If the sales price of my business includes goodwill, is that portion subject to capital gains treatment or is the goodwill considered to be ordinary income? ...
Asked in DIY Projects
Explain how do you measure the value of the return on Goodwill in terms of income and expenses?
One way I can think of is: Income - Expenses = Profit (These figures can be found in the Profit and Loss statement) Now substitute the profit figure into the following equation: Profit / Goodwill = Return on Goodwill (The goodwill figure can be found in the Balance Sheet) So even though a brand may be perceived as very strong, if the carying value of the goodwill is very high then the return on goodwill will be lower. ...
Asked in Business Accounting and Bookkeeping
Does Goodwill in the profit and loss statement?
Goodwill is not a normally recurring income statement item. However, goodwill must be tested regularly for impairment (a decline in its market value). If an impairment loss is found (its value on the books is greater than its market value), the loss must be reported immediately, and in full, on the income statement for the period in which the loss was identified. ...
How much do we pay if we have a zazzle shop for tax?
For tax purposes your income from a Zazzle Store will be treated as self employed income which should be declared on your annual tax return. Depending in which country you pay your taxes, Zazzle may have to declare your earnings to the Tax Authorities. ...
Valuation of goodwill?
Goodwill means the reputation of a Business concern which enables businessmen to earn extra profit, as compared to other concern. Goodwill means various advantages of reputation and connections of a business. Mr. Kohler defines goodwill as "the current value of expected future income in excess or normal return on the investment in net tangible assets:" ...
Asked in Taxes and Tax Preparation, Income Taxes
Income Tax Savings under Section 80C?
If you happen to be a corporation whose property was expropriated by a foreign government and later returned, here is what IRC Section 80(c) says: (c) Character of income For purposes of this subtitle- (1) Except as provided in paragraph (2), the amount included in gross income under this section shall be treated as ordinary income. (2) If the loss described in subsection (a)(2) was taken into account as a loss from the sale or exchange of a capital asset, the amount included in gross...
How is interest on loans income treated in the books of a bank?
As long as the loan account is under standard category, the interest on such loan is treated as income, as the sub standard loan accounts does not earn interest and hence, the interest on such loans can not be considered as income ...
Asked in Economics
Is per capital income as in macro economics?
Percapita income is income per head.It is calculated by total income by total population.Therefore it is treated as a Macro concept.Percapita income is expressed in countrywise .Percapita income of USA is twice the income of India ...
Are state income tax payments deductible on a corporate tax return?
Yes. State income (and net worth based) taxes are deductible from taxable income for Federal income tax purposes. ...
Asked in Authors, Poets, and Playwrights
What has the author Harold William Jasper written?
Harold William Jasper has written: 'Averaging of income for federal personal income tax purposes' -- subject(s): Income tax, Income averaging ...
Asked in Income Taxes
With respect to prepaid income from services is the treatment of prepaid income the same for tax and financial accounting?
No - for financial accounting it is treated as deffered income (included in income when earned) and for tax perposes it is income in the year received. ...
Asked in Business Accounting and Bookkeeping
What is the meaning of Goodwill in Accounting language?
GOODWILL is that intangible possession which enables a business to continue to earn a profit that is in excess of the normal or basic rate of profit earned by other businesses of similar type. The goodwill of a business may be due to a particularly favorable location, its reputation in the community, or the quality of its employer and employees. The evidence that goodwill exists is the proven ability to earn excess profits. Goodwill is created on the books of a newly...
Asked in Taxes and Tax Preparation
Do you have to pay state taxes on social security benefits?
I know that social security is income and recipients receive a 1099 for tax purposes. So that income is combined with your other income sources and is factored into your taxable income. ...