miércoles, febrero 21, 2024

Bookkeeping

Bookkeeping

Understanding Accumulated Depreciation: Definition, Calculation, and Examples

The depreciable base for the building is $240,000 ($250,000 - $10,000). Divided over 20 years, the company would recognize $20,000 of accumulated depreciation every year. 80 Co is a company that farms dairy cattle. Cow Co. owns the farmland on which the cattle are located, having purchased it for P1 million in 2014. The land is measured at cost under PAS 16. After two years, the company realizes the remaining useful life is not three years but instead six years. Under GAAP, the company does not need to retroactively adjust...
Bookkeeping

Understanding the child and dependent care credit Internal Revenue Service

However, if the dependent child is being claimed under the qualifying relative rules, the child’s gross income must be less than $4,700 for the year in 2023. This threshold increases to $5,050 for 2024. If multiple adult children are supporting their elderly parent, generally the child who provides more than 50% of their support can claim them as a dependent. You (and your spouse in the case of a joint return) must have earned income to claim the credit.For families with two or more dependents, the credit was up to...
Bookkeeping

US Hiring and Wage Growth Slowed in January, ADP Data Show

Layoffs seen in some white collar industries are part of a pull-back from pandemic era hiring, research institute ADP's chief economist Nela Richardson said on Wednesday, as employers continued to hire, but at a slower pace in January. AI-powered legal analytics, workflow tools and premium legal & business news. While hiring slowed, it was broad-based across industries and regions, signaling demand for workers remains healthy. The median estimate in a Bloomberg survey of economists called for a 150,000 increase. US companies added fewer jobs than forecast at the start of...
Bookkeeping

Net Realizable Value NRV Formula + Calculator

This allows managers to calculate the total cost and assign a sale price to each product individually. It also allows managers to better plan and understand whether to stop production at the split-off point or if it is more advantageous to continue processing the raw material. One limitation is that it relies on estimates and judgments about future sales prices and costs. These projections may not always accurately reflect actual market conditions. We also know that the market ceiling is the same as the NRV and the market floor is...
Bookkeeping

ADP National Employment Report: Private Sector Employment Increased by 107,000 Jobs in January; Annual Pay was Up 5 2% Jan 31, 2024

One of those is State unemployment in terms of - obviously, we sit here today forecasting what that looks like. Most of those rates are issued throughout this quarter. And so, while we have some line of sight, in the end, we don't know entirely what the State unemployment outcome - we do expect that it creates a little bit of a - rates are going down year-on-year again this year. Sometimes the States, as an example, make very strange decisions that aren't always in line with what's happening from...
Bookkeeping

R&D Capitalization vs Expense How to Capitalize R&D

If a company doesn’t capitalize research and development, its net income can be significantly higher or lower because of the timing of R&D spending. It’s important to note that net income doesn’t include the significant investments in R&D under its cash flow from investing activities. Additionally, this issue seems to contradict one of the main accounting principles, which is that expenses should be matched to the same period when the corresponding revenue is generated. Let us compare GAAP with the International Financial Reporting Standards (IFRS). Normal capacity is the production...