Answer:
$0
Explanation:
During the past two years, through extensive advertising and improved customer relations, Orange Corporation estimated that it had developed customer goodwill worth $500,000. For the current year, determine the amount of goodwill Orange may amortize.
Self created goodwill is not a 197 intangible and thus cannot be amortized.
Intangible property are property acquired for use in a trade or business or for the production of income be amortized over fifteen years from the date of acquisition regardless of the assets useful life, good will is an example of intangible property.However,self created goodwill cannot be amortize for example customer list that you developed over the years for your own business can not be amortize.
Answer:
E&P $1,200,000 × 25%= $300,000 reduction
Crane Corporation would reduce its E & P in the amount of $300,000 as a result of the redemption.
This represents a 25% decrease in the amount of the E & P corresponding to the 25% stock redemption.
When a stock redemption results in sale or exchange treatment for the shareholder, the E & P account of a corporation is reduced in an amount not in excess of the ratable share of the E & P of the distributing corporation attributable to the stock redeemed.
As such, none of the expense of $13,000 of accounting and legal fees or other is deductible.
To Make Sure There Are No Gaps In Your Payments And To Have A Idea In Mind Of Income And Spending So You Can Come Up With A Budget Plan
There are many ways you can pay for your college tuition. First, you can find a part time job. Most colleges are gracious to students, especially working students. So they would usually allow installments on the tuition fee, with some added terms. If not, there would always be university scholarships if you happen to be doing well in your studies. There also is the option of student loans for those students who need help in paying for the tuition.
Answer:
C) Overstating or understating allowances and reversing amounts in the future to smooth out net income over time.
Explanation:
Cookie jar reserve is defined as an accounting practice by businesses where the profit a company makes from successful years are reserved to cover up for years with losses. It balances losses from unsuccessful years.
Investors are led to believe that losses in bad years are less than they actually are.
For example not allocating an expense to a particular accounting year but instead allocating it to a year when the company made profits.
In essence it is overstating or understating allowances and reversing amounts in the future to smooth out net income over time.
