Distinguish between capital and revenue expenditures
Capital expenditures are added to the acquisition cost of a plant asset because they either extend the useful life or make the asset more productive. Revenue expenditures are reported on the income statement as expenses.
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In terms of contract discharge, distinguish between a contract that is subject to a condition precedent and one that is subject to a condition subsequent
What will be an ideal response?
Dark Room Corp purchased equipment for $45,000
Total depreciation of $36,000 was recorded. On January 1, 2017, Dark Room exchanged the equipment for new equipment, paying $65,000 cash. The market value of the new equipment is $65,000. Prepare the journal entry to record this transaction. Assume the exchange had commercial substance. What will be an ideal response
Myrna serves in a representative capacity for Locke. With respect to binding Locke to contracts, Myrna's authority
A. may be implied or apparent. B. must be implied and apparent. C. must be implied and not apparent. D. cannot be implied or apparent.
When taxes are deducted from employees' earnings up to the same amount of taxes they would pay had they remained in their home country, it is known as
A. tax protection. B. expat tax. C. tax equalization. D. compensatory tax.