Duane Case Summary

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Case Study 11.2
The relevant code section pertaining to Duane’s question would be 26 USC 222 of the U.S. Code. The qualified tuition and related expenses sections applies to the situation. Duane would be able to deduct all of his class expenses as long as they did not exceed certain thresholds based upon his income. The court decision in Singleton-Clarke v. Commissioner of Internal Revenue stated that Singleton was allowed to deduct her educational expenses because they furthered her skills in her current career.

Duane,
Based on the facts of your situation and subsequent research, the answer to your question is yes, you may deduct the cost of your class. The Internal Revenue Code Section 222 states that individuals may deduct qualifying
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IAS 16-30 and 16-31 lay out two methods to record the value of property. The first method is the cost model; this states that the property is carried at cost less any accumulated depreciation or impairment losses. The second method is the revaluation model. The revaluation model can be used to carry the building at fair value, if it can be measured reliably, less any accumulated depreciation and impairment losses. If the company chooses the revaluation model, IAS 16-39 states that the $10 million increase in value would be recognized through comprehensive income under the heading “Revaluation Surplus”.
4. According to Ernst & Young’s IFRS/GAAP comparison guide, if the plant were recorded under GAAP, the initial costs would remain the same. Under GAAP however, property cannot be revalued to fair value. The comparison guide can be found at this link: http://www.ey.com/Publication/vwLUAssets/EY-US-GAAP-vs-IFRS-the-basics-2013/$FILE/EY-US-GAAP-vs-IFRS-the-basics-2013.pdf)

Case Study 13.1
Project: A current project on the Financial Accounting Standards Board (FASB) agenda is “Subsequent Accounting for Goodwill for Public Business Entities and Not-for-Profit Entities”. This project deals with the discussion as to whether any other changes should be considered in the subsequent measurement of goodwill besides impairment testing.

Issue it is addressing: Companies are concerned about the cost and complexity of goodwill impairment testing so FASB decided to discuss whether and

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