Is the term "earnings and profit" well defined in the internal revenue code? Explain. What procedure should we follow in eliminating unrealized gains? What is meant by the terms 'operating earnings' and 'non-operating earnings'? Why is the distinction between the two important?
Paper profits and losses are the same asunrealized gainsandunrealized losses. The profit only exists in the investor's (or business entity's) ledger, and it will remain that way until the asset positions are closed out and settled in real money. Some gains or losses may only be temporary ...
What do you understand by deferral? What is an unrealized holding gain (loss)? Explain. What do you understand by capital stock? What do you understand by byproducts? Briefly explain the differences between the terms, depreciation, depletion, and amortization. ...
Conversely, when themarket is thriving, and asset prices are increasing, MTM can lead to an increase in the value of certain accounts on a company’s balance sheet. This could result in the recognition of unrealized gains, making the company look more profitable than it might be when consider...
For example, a security or fund may have an unrealized tax loss that would benefit the holder in a specific tax year. In this case, it would be advantageous to capture that loss to offset gains by replacing it with a similar asset, as per IRS rules.1 Other examples of advantageous ...
Such contagion is not due to Fractional Reserve Banking per se. It is more a product of duration mismatch, after a long period of buying assets at low yields / high prices then a period of higher yields / lower asset prices, hence unrealized losses. ...
Panela is a less commonly found cane sugar very similar to muscovado, produced mostly in Colombia. Palm sugar is even better on the labour and ecological side of things, produced by smallholders from sap extracted from a few different varieties of palms, which are maintained for the sap, and...
Explain why the shareholder's basis in the new stock received in a corporate reorganization is the value of the stock received less the postponed gain. Explain how the investment account is affected by investee activities under the equity method....
That’d be realistically possible if the original number was cash and the net worth one included leveraged real estate with unrealized gains. Reply Financial Gladiator February 7, 2019 Sorry for some reason I didn’t get a notification about a reply. Not too crazy but fairly lucky timing. I...
would cause.I go by the Golden Rule: Do unto others as I would have them do to me.” Later, as his comment sinks in, I realize that is the very reason I probe my past, even though it may cause others pain. My brother’s question plagues me still: What is real, and what is ...