Inflation sometimes causes people to pay increasing capital gains tax than they ought to. When accounting for inflation, capital gains tax may rise if there was an increase in the real purchasing power of an asset when the value of the asset did not increase. If capital gains were adjusted in relation to inflation, the tax would be a zero value.
Answer:
you have to ask a question if you don't see what you need
Explanation:
Answer: av technology and film
explanation: he works with film
The matching principle and the revenue recognition principle are the two accounting principles that are critical to the adjusting process.
The revenue that should be recognized in the accounting period in which it is earned is stated by the revenue recognition principle. Efforts (expenses) can be matched with accomplishments (revenues) as stated by the matching principle.
Revenue recognition principle: It is a generally accepted accounting principle (GAAP) that stipulates how and when the recognition of revenue should be done. This principle is using accrual accounting requires in the revenues are recognized when realized and earned but not when cash is received.
The matching principle: It is also an accounting principle that records revenues and expenses. It needs the business records expenses alongside when revenues are earned. They both fall within the same period of time for the clearest tracking ideally. Businesses must incur expenses to earn revenues as which is recognized by the particular principle.
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Answer:
16 years
Explanation:
ictionopolis has a real GDP per capita of $5,000, which is growing at 10% per year. Sitara has a real GDP per capita of $10,000, which is growing at 5% per year. Real GDP per capita for the two nations will converge in about sixteen years.
Year Ictionopolis Sitara
1 5000 10000
2 5500 10500
3 6050 11025
4 6655 11576.25
5 7320.5 12155.062
6 8052.55 12762.81
7 8857.80 13400.95
8 9743.55 14071.00
9 10717.94 14774.55
10 11789.73 15513.28
11 12968.71 16288.94
12 14265.58 17103.39
13 15692.14 17958.56
14 17261.35 18856.49
15 18987.49 19799.31
16 20886.24 20789.28
