To perform such an action is to reciprocate, and the act of doing so is called reciprocation. For example, when someone does you a favor, you can reciprocate by doing something nice for them. A remarkable centerpoint fund accounting identity of ideas and tastes, a ready and mutual sympathy, a reciprocal respect, soon made them…
Most, but not all, expenses are deductible from a company’s income (revenues) to arrive at its taxable income. The most common tax-deductible expenses include depreciation and amortization, rent, salaries, benefits, and wages, marketing, advertising, and promotion. An expense is a type of expenditure that flows through the income statement and is deducted from revenue to…
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A parent S corporation can elect to treat an eligible wholly owned subsidiary as a qualified subchapter S subsidiary. If the election is made, the subsidiary’s assets, liabilities, and items of income, deduction, and credit generally are treated as those of the parent. The income of an S corporation generally is taxed to the shareholders…
The book value of an asset is calculated by subtracting its accumulated depreciation from its original cost. Since the salvage value is assumed to be zero, the depreciation expense is evenly split across the ten-year useful life (i.e. “spread” across the useful life assumption). In order to calculate the depreciation expense, which will reduce the…
