The costs of creating or acquiring a trademark are treated, for accounting purposes, the same way as goodwill and other intangible assets. Instead of taking a large expense in one accounting period, the costs are spread out over the life of the asset. Divide the total capitalized cost by th...
The obligation of retirement of asset is to consider as the legal compulsion on the company to retire the long-lived tangible asset and eliminate the dangerous materials based on the happening of the future conditional event at a future date....
The IRS definition of organization costs is another area that gets complex. Some costs, such as the expense of issuing corporate stock, count as syndication costs for tax purposes, not organization costs. Syndication costs don't get any immediate deduction: You have to depreciate them. ...
In general, acquisitions shouldn't affect your business's income statement, at least at first, since the transaction will be confined to the balance sheet. However, specific assets you obtain as part of the acquisition may have to be depreciated or amortized, which means at least part of ...
What are goodwill and intangible assets? Why might you want to value these items? What is impairment testing? What are intangible assets? Give some examples. How do you account for proceeds from an asset that has been fully amortized? What type of intangible assets is subject to amorti...
Only 3/4 of the incorporation costs qualify for depreciation per Schedule 10, and the depreciation rate is 7% per year. Finally, you should also complete the T2 Return, Schedule 1 for calculating Net Income for Tax Purposes, and Schedule 50 to report shareholders’ information. Thanks, Allan ...
In 2001, theFinancial Accounting Standards Board (FASB)declared in Statement 142–Accounting for Goodwill andIntangible Assets–that goodwill was no longer permitted to beamortized. In accounting, goodwill is accrued when an entity pays more for an asset than its fair value, based on the company...
trademarks, copyrights, and goodwill. These types of assets may lose value, but they generally don't depreciate. Instead, for tax purposes, intangible assets are generally amortized over their useful life or a statutory
Goodwill is an intangible asset that's created when one company acquires another company for a price greater than its net asset value. It's shown on the company'sbalance sheetlike other assets. But goodwill isn't amortized or depreciated, unlike other assets that have a discernible useful li...
that consists of interest versus the portion that is principal. This can be useful for purposes such as deducting interest payments on income tax forms. It is also useful for planning to understand what a company's future debt balance will be after a series of payments have already been made...