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How has Congress used depreciation to target small business activities for special treatment?
Wiki User
∙ 10y ago
Congress has used depreciation to target small business activities for special treatment with enhanced small business expensing. The small business health insurance tax credit is another way they use depreciation to help small businesses.
Wiki User
∙ 10y ago
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Can depreciation charged at building?
Building is an asset for business and depreciation is only charged to assets of business so in this way depreciation is charged to building as well.
Sum of the year depreciation?
In sum of year digit depreciation method depreciation is charged based on total number of years fixed assets is usable in business instead of using any percentage or fixed amount of depreciation.
Is it necessary to provide depreciation in the business running in loses?
it is necessary to provide depreciation even business is running in loses or in profit because depreciation provides fund for future and remove the burden of fund for purchasing new machinery when old machinery are broken down.
Is depreciation a asset?
Depreciating asset is that asset which is utilizing by business in generating revenue and cost of asset is allocating to income statement through depreciation.
Fixed asset depreciation schedule?
Fixed asset depreciation schedule shows the calculation of yearly depreciation expense which is scheduled to be charged to income statement for all fixed assets and the total amount of depreciation applicable to specific income statement of business.
Is depreciation calculated on date of purchase of the article?
Depreciation is calculated from the date it is put in the business to work and revenue generation. both dates can be or cannot be same.
If you start a new business usin existing machinery equipment you own can the fair market value of the equipment be used as asset value for depreciation?
Yes whenver old asset is utilized in business it is it's fair value which is used for depreciation purpose in business.
How does Congress use its commerce powers?
The Congress can use its commerce powers in various ways. These may include regulating business activities, breaking monopolies, regulating banks and stock markets and so much more.
How does congress uses commerce power?
The Congress can use its commerce powers in various ways. These may include regulating business activities, breaking monopolies, regulating banks and stock markets and so much more.
What depreciation method is most frequently used in business today?
stright line
Describe a business situation that would not require a specialized journal?
Depreciation. Accruals.
Is depreciation a source of fund?
Some people state that depreciation is a source of funds or a source of cash. I disagree. Depreciation expense is reported as a positive amount on the statement of cash flows prepared under the popular indirect method. However, the reason it is listed is to adjust the net income amount that had been reduced by depreciation expense on the income statement. (Recall that the depreciation entry debits Depreciation Expense and credits Accumulated Depreciation-the cash account is not involved.) In other words, the positive depreciation amount reported on the statement of cash flows is merely one of the adjustments needed to convert the accrual net income to the cash provided from operating activities. Depreciation is not a source of cash. Let's illustrate this with some amounts. A sidewalk florist operates a cash only business. During the most recent year, this florist had cash revenues of $100,000. Its expenses included $70,000 of cash expenses and $8,000 of depreciation expense on its truck that was purchased in an earlier year. During the year there were no other revenues or expenses, and the florist's cash balance increased by $30,000. The florist's income statement will report net income of $22,000 (revenues of $100,000 minus expenses of $78,000). The florist's statement of cash flows prepared under the indirect method will begin with net income of $22,000. It will then add the $8,000 of depreciation expense. The result is cash provided by operating activities of $30,000-which agrees to the business's change in its cash balance. The $8,000 of depreciation expense was not a source of cash, even though it appears as a positive amount on the statement of cash flows.
