Depreciation is an accounting entry that represents the reduction of an asset’s cost over its useful life. There are different methods used to calculate depreciation, and the type is generally selected to match the nature of the equipment. For example, vehicles are assets that depreciate much faster in the first few years; therefore, an accelerated…
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You figured 10% of the total days rented to others at a fair rental price is 27 days. On February 1, when Eileen changed her house to rental property, the property had an FMV of $152,000. Of this amount, $35,000 was for the land and $117,000 was for the house. Treat as a capital cost…
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For example, if your home office is 10% of your entire living space, you can deduct that much from the costs of mortgage, rent, utilities and some kinds of insurance. IRS Form 8829 will help you figure out the eligible expenses for business use of your home. Now, that we have an understanding of what…
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So whether you’re borrowing or saving, it’s worth figuring out your effective rate. Both yield and interest rates are important terms for any investor to understand, especially those investors with fixed income securities such as bonds or CDs. For the most part, banks, credit card companies, and other businesses use APR when touting their products….
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Calculating direct materials used demands that you know the actual materials consumed in production in a given period. With this knowledge, you can get the cost of inventory and work out the work-in-progress inventory. Although direct and variable costs are tied to the production of goods and services, they can have some distinct differences. Variable…
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Income taxes are discussed in greater detail in Record Transactions Incurred in Preparing Payroll. A long-term liability is one the company expects to pay over the course of more than one year. Liabilities must be reported according to the accepted accounting principles. The most common accounting standards are the International Financial Reporting Standards (IFRS). However, many…
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A partnership that is a section 721(c) partnership will also attach to its Form 1065 a Schedule K-1 for each partner that is a related foreign person with respect to the U.S. transferor. For an indirect partner that is a related foreign person with respect to the U.S. transferor, the Schedule K-1 will only include…
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With Bench’s Catch Up Bookkeeping services, a Bench bookkeeper will work through past months of disorganized bookkeeping to bring your accounts up to date. For your outsourcing partner to start working, he will need access to your Accounting software and any other Apps or Platform you are using. If possible, you can appoint an in-house…
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The purpose of recording a transaction twice is to ensure accuracy and reconciliation at the end of a designated period. Bookkeepers prepare financial documents for critical financial planning and filing taxes. To create these documents, a bookkeeper maintains a general ledger which is part of double-entry bookkeeping. The transaction is recorded as both credit and…
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