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A balance sheet carries property at book value. Accounting rules do not let you mark up / mark down property as prices change. The exception to this is for real estate professionals who buy/sell property and carry it as inventory. Since you state it is rental real estate, it implies holding it for rent. You held it for a long time, because it fully depreciatied. Rest of question was cut off -- limitations created by carrying low ?????
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What is isolated transaction?
(a)those transactions outside the ordinary course of business of a taxpayer carrying on a business; and(b)those transactions entered into by non-business taxpayers.
Accounting period concept?
account period accounting period depends on the person carrying the business. Normaly it starts from 1st april. people may have calendar year as an accounting year.
What is goodwill impairment?
Answer - Goodwill impairment occurs when the value of the goodwill of a business unit declines to an amount less than the carrying value of the goodwill on the company's books. With the adoption of SFAS 142 by the Financial Accounting Standards Board (FASB), audited companies are now required to test goodwill annually for impairment. This testing is done by valuing the business unit having the goodwill.
What is the difference between the ordering cost and carrying cost?
Ordering cost is the cost to get it here. Carrying cost is the cost to keep it here.
Do purchase costs come in carrying cost?
Carrying cost is those type of costs which requires to safely keeping the stock of material which includes ware house, insurance etc so purchase cost is not a part of carrying cost.
