ADMS 3520 Chapter Notes -Financial Statement, Weighted Arithmetic Mean

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All corporations have a financial statement prepared for accounting purposes using generally accepted. This accounting statement must be adjusted to be in accordance with income tax rules. Expenditures are only allowed if incurred by taxpayer for the purpose of earning income from a business or property. This rule eliminates: personal expense paid through a business and, expenses that are not in the name of the company (business) Not deductible unless based on actual costs. Interest & property taxes on vacant land. Membership dues at social or recreational clubs. Deductible 1/5 per year for 5 years. Amortized over the term of the lease. Interest expense is deductible if loan is incurred to earn business income. Must be in an area within territorial scope of the business. Inventory is allowed to be valued using fifo, weighted average, or specific inventory price (not. Reserves for tax purposes are only allowed for bad.

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