Asset

nature, then a tax benefit may be present. Specifically, capital gains that are long-term in nature are subject to the preferential capital gains tax rate. In order for transactions gain to be listed as long term, typically the seller had to hold the asset for more than one year. Once this is achieved and the sale has transpired any long-term gains that are remaining after the netting process can be taxed at the lower capital gains rate. This is advantageous for all taxpayers; however it is…

car an asset? Should you include it in your net worth calculation? How do you know what it’s worth and how much it’s depreciating? The short answer is yes, generally, your car is an asset. But it’s a different type of asset than other assets. Your car is a depreciating asset. Your car loses value the moment you drive it off the lot and continues to lose value as time goes on. Why is my car an asset? Broadly defined, an asset is anything you own. You own your car. Therefore, it’s an asset. But…

The M Industries purchased 6 million shares of S House Inc. common on 3rd January, 2013 for $48 million. With the purchase of shares M Industries started holding 30% interest in the net assets of S House Inc. therefore the company will also earn 30% of net income of S House Inc. along with the amount of dividend declared by M Company at the rate of $1.00 per share on 15th December, 2013. The net income of S House as reported for the year ended 31st December, 2013 was $40 million. The M…

the calculated margins for profitability, leverage – to estimate the amount of debt in the company’ assets. In 2013 and 2014, EasyJet was not highly leveraged, because the amount of debt is less than the equity in the company; but 2012, the yearly debt exceeded the equity, meaning that in 2012 the company was highly leverage. The last part of the table is concerning the company’s security and assets, which can be bought or sold quickly, meeting the company’s financial obligations, without…

Act provides that the assessee must include in his/her assessable income the net amount generated by way of sale of capital asset held by him/her during the income year under consideration.  According to 102-20, the capital gain tax is attracted only when CGT event takes place. The section further provides that CGT event takes place when assessee transfers the capital Asset during the income…

For this week’s reflection, I choose to write about Mapping Community Assets Workbook by Diane Dorfman. The key concept for the reading was about how you can see what people around you can offer to help you achieve or gain something. The main point of the reading was to help the reader see what they have to offer and what other people the reader knows can offer them. The concept I had the most trouble with is coming up with assets of mine that weren’t materialized but actual individuals.…

It is the excess of the purchase price over the fair value of all the tangible assets acquired, arrived at by carefully ascertaining the value of such assets—at least in theory. The analyst must be alert to the makeup and the method of valuation of Goodwill as well as to the method of its ultimate disposition. One way of disposing of the Goodwill account, frequently preferred by management, is to write it off at a time when it would have the least impact on the market's assessment of the…

a very little education but knew a lot about business. The author states about the different lessons ho got to learn about financial education from both his fathers. This book focuses on developing financial intelligence. He differentiates between assets and liabilities. He teaches some other key lessons that can be very useful to not only earn money but to keep the money as well. One of the most important lessons that I learned is to be bold. Many times life provides…

expense generally made to acquire an asset or improve the capacity of the asset. Unlike Revenue Expenditure, which is an expense made for operating day-today activities of the business. The difference between Capital and Revenue is explained here. Capital Expenditure Vs Revenue Expenditure 1. Comparison Chart 2. Definition…

Red Flags: 1) The significant unusual increase in long-term assets From 2003 to 2007, we can see that Bear Stearns’s long-term assets increased $170,836 (124.96%), while its current assets increased only 16.38%. This is a red flags because long-term assets are usually funded by long-term debts or stockholders’ equity. If a company put too many assets in its long-term categories, its financial flexibility will be impaired. 2) The significant increase in current and long-term liabilities From…