Answer:
$17,500
Explanation:
Calculation of Pat's taxable gain in the year of sale using the installment sales method :
First step is to add up Land + Cash
$75,000+$25,000
=$100,000
Second step
([$100,000-$30,000)/$100,000]*$25,000
=($70,000/100,000)*$25,000
Hence:
0.7*$25,000
=$17,500
Therefore Pat's taxable gain in the year of sale using the installment sales method will be $17,500
Answer:
Depreciation expense= $3,340
Explanation:
According to International Accounting standards (IAS) 16 property plan and equipment (PPE), the cost of an asset is the purchase cost plus other costs of bringing it to the intended working conditions.
Cost = 17,000 + 700 + 2,000= 16700
Depreciation expense per year = Cost - salvage value /Number of year
Depreciation = (16,700 - 3000)/5 =3340
Depreciation expense= $3,340
Income taxes are those taxes that are paid on any financial gain.
Income taxes are a progressive type of tax system. Them are taxes that are paid on all forms of income.
This type of tax , taxes those that have more income that those that have lower income.
The government uses the income tax to fund several public services and also use it for the provision of goods to the citizens in the country.
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Answer:
Sole proprietorships and partnerships generally have a tax advantage over many corporations, especially large ones.
Explanation:
Sole proprietorships have a few advantages over different business substances. They are anything but difficult to frame, and the proprietors appreciate sole control of the business benefits. In any case, they likewise have disadvantages, the biggest of which being that the owner is personally liable for all business losses and liabilities.
