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Is it mandatory to deduct depreciation for the purposes of income tax?
Yes, to the degree the law reads your gain will be calculated from the basis of the depreciation taken or should have been taken.
Distinguish between depreciation policy and the concept of depreciation?
Depreciation policy is management thing that what depreciation method to use and how much depreciation to charge to each asset. Depreciation concepts are concepts which govern the depreciation process which management cannot change they are universal rules to follow depreciation that how straight line depreciation work etc.
What is the entry for accumulated depreciation?
Debit depreciation accountCredit accumulated depreciation
Can improvements when owning a home be depreciated once it becomes a rental?
Yes. But this may not be a good thing. The conversion to a rental/investment sets the basis for depreciation og the entire property. The amount of gain realized on that conversion would be taxable (unless converted to another residence). You end up forgoing the benefits of owning a residence....probably the biggest benefit available to most people in the tax code. The depreciation is only a timing difference and is repcatured upon sale of the investment and taxed then in any case, at ordinary, not capital gain rates. (Depreciation reduces the basis in the property, so your gain on sale is higher. The rules do not allow you to take depreciation as an ordinary income expense and recapture it as a capital gain, lower rate). Conceptually, it is the same as selling you house and using the proceeds to buy an investment property.
What is the difference between depreciation and accumulated depreciation?
Depreciation is for a particular year (say for Year 3). Accumulated depreciation is the aggregate of depreciation from the beginning (say from Year 1 to Year 3)
Is it mandatory to deduct depreciation for the purposes of income tax?
Yes, to the degree the law reads your gain will be calculated from the basis of the depreciation taken or should have been taken.
How does depreciation of a country's currency improve that country's competitiveness in foreign trade?
Depreciation lowers the price level ratio of the country to other countries, lowering exchange rates, and making it cheaper for foreigners to buy the country's goods, increasing exports. Thus, depreciation artificially lowers the cost of all goods produced by a country, making them more competitive.
Does section 291 recapture 20 percent of the lesser of depreciation taken or the realized gain as ordinary income?
yes
You discarded a display case that had 7200 of accumulated depreciation which was 8000 at original purchase what gain or loss are involved?
loss of $800
How are accumulated depreciation and depreciation related?
Accumulated depreciation and depreciation are related with each other as depreciation is annual expense while accumulated depreciation is the sum of all annual depreciation expenses.
How are accumulated depreciation and depreciation expensese related?
Accumulated depreciation and depreciation are related with each other as depreciation is annual expense while accumulated depreciation is the sum of all annual depreciation expenses.
What is the Journal entry for gain on sale of equipment?
debit accumulated depreciationdebit cashcredit assetcredit gain on sale of assetDebit to Cash (or Accounts Receivable) for the sale Price. Debit to Accumulated Depreciation for the total amount of depreciation charged against that piece of equipment since its original purchase date. Credit to Equipment account for the original purchase price. Credit to Gain on Sale of Fixed Asset (or Other Income) for the difference needed to balance the entry.
Why accumulated depreciation exceed depreciation expense?
Depreciation expenses is for one specific fiscal year while accumulated depreciation is the sum of all depreciation expenses that’s why accumulated depreciation exceeds the depreciation if there is depreciation expense in prior year as well.
Distinguish between depreciation policy and the concept of depreciation?
Depreciation policy is management thing that what depreciation method to use and how much depreciation to charge to each asset. Depreciation concepts are concepts which govern the depreciation process which management cannot change they are universal rules to follow depreciation that how straight line depreciation work etc.
When did we gain independencia?
I cannot tell when your country gain independence because I do not know your country.
Is unrealised Foreign Exchange gain part of EBITDA?
Although there are some exceptions, in most situations, the EBITDA (or Earnings Before Interest, Taxes, Depreciation and Amortization) does allow for unrealized foreign exchange gain.
How does exchange rates depreciation affect the south African economy?
Exchange rates depreciation affect the south African economy because it leads to changes in inflation in the country' economy .
