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ruslelena [56]
3 years ago
9

Scott owns a welding business in alabama. every year, when he meets with his accountant to file his tax returns, he claims that

he should be able to show a loss on his tax returns. his accountant always shows a profit on his tax returns. fully explain what scott's claim is based on.
Business
2 answers:
kykrilka [37]3 years ago
8 0
For a loss to be shown on his tax return, the total expenses (prices of goods, supplies, transportation and so on) must be larger than the sale or revenue. 
Since he's always showing profit, this means that his revenue his more.

Scott may be including some illegitimate factors (factors that are not usually included in the calculation) in his calculations. These factors may lead to hypothetical loss for him.
Mice21 [21]3 years ago
7 0

For a misfortune to be appeared on his government form, the all out costs must be bigger than the deal or income. Since he's continually indicating benefit, this implies his income his more. Scott might incorporate some ill-conceived factors in his estimations. These components may prompt theoretical misfortune for him.  

Further Explanation:  

Example 1:  

Expecting that the bookkeeper is right all things considered, Scott is ascertaining his misfortune on costs or different elements that that would not be real conclusions or costs. A typical Example is vehicle mileage the citizen wishes to guarantee as business mileage yet by principle would be viewed as driving mileage.  

Example 2:  

Another Example would be things that Scott may wish to cost completely in this assessment year however by guideline they should be devalued. Scott could need to take a business utilization of his home yet have a misconception of what the standards are. There are many such regular issues when doing a business return and the customer does not comprehend the expense rules.

Subject: business

Level: college

Keywords: Example 1, Example 2.  

Learn more about evolution on:

brainly.com/question/8599868

brainly.com/question/9627273

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vladimir1956 [14]

Answer: Depreciation is tax deductible

Explanation:

Depreciation on assets is recognized by tax authorities as an expense that a business actually incurs so when the income statement is calculated, depreciation needs to be removed as the expense that it is so that taxes can be calculated on the profit.

Depreciation however, does not take actual cash from the company i.e the company does not actually pay anyone cash for depreciation like most other expenses. It needs therefore to be added back to the Free Cash Flow because the FCF deals with how much actual cash the company has which is something that Depreciation being a non-cash expense did not reduce.

3 0
3 years ago
The government might enact a price ceiling in order to accomplish what
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A limit of spending of the government, 
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Breezy Company is considering the replacement of equipment that has a current book value of $340,000. Breezy has an oppprtunity
Rzqust [24]

Answer:

$340,000

Explanation:

A sunk cost is a cost that has already been incurred and cannot be affected by any decision that someone makes. E.g. once you pay an expense like rent, the cost will not be recovered or altered by any decision that you make. Sunk costs is simply money that has been spent and cannot be recovered.

7 0
3 years ago
FedEx is the world's leading express-distribution company. In addition to the world's largest fleet of all cargo aircraft, the c
andriy [413]

Answer:

Journal entries

Explanation:

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Now the journal entries are as follows

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(Being the disposal of the truck is recorded)

b)  Cash Dr $16,400

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3 years ago
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PIT_PIT [208]

Answer:

political union.

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This is an example of a political Union.

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3 years ago
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