At Westonci.ca, we make it easy for you to get the answers you need from a community of knowledgeable individuals. Join our platform to connect with experts ready to provide precise answers to your questions in different areas. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.
Sagot :
Amortization of cost of acquiring a perpetual dealer’s franchise $6,000. $1600 is deductible in Rail's 2017 return for purchase of the dealer's franchise.
Define amortization.
Amortization is an accounting technique that gradually lowers the book value of a loan or other intangible asset over a certain period of time. Loan amortization concentrates on postponing loan payments over time. In terms of how it impacts an asset, amortization is similar to depreciation.
Two scenarios are described by the term "amortization." First, amortization is a tool used in the process of repaying debt over time with consistent principal and interest payments. Through periodic payments, an amortization schedule is used to lower the outstanding balance on a loan, such as a mortgage or vehicle loan.
For accounting and tax purposes, amortization can also refer to the technique of distributing capital expenses for intangible assets over a predetermined period, often over the asset's useful life.
to know more about amortization check the link given below:
brainly.com/question/15357884
#SPJ4
the question you are looking for-
John Budd is the sole shareholder of Rail Corp., an accrual-basis taxpayer engaged in wholesaling operations. Rail's retained earnings at January 1, 2017, amounted to $1 million. For the year ended December 31, 2017, Rail's book income before federal income tax was $300,000. Included in the computation of this $300,000 was the following:
Amortization of cost of acquiring a perpetual dealer's franchise (Ral paid $48,000 for this franchise on July 1, 2017, and is amortizing it over a 48-month period.)
$6,000
What amount is deductible in Rail's 2017 return for purchase of the dealer's franchise?
Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.
