--%>
Assignment Help - homework help

Capital gain

The increase in value that the owner of a capital asset receives when the asset is sold. The owner pays tax on that gain or increases, at a lower rate if the assets that are sold are capital asset, such as factory buildings, rather than assets that are sold in the normal course of business, such as inventory. Capital gain is usually associated with the sale of investments or prop- erty used for personal reason, such as cars or houses. If the asset was held for more than one year, the gain is a long-term capital gain or increase, and the tax rate is 20%, or 10% if the taxpayer is in a low tax bracket. If the asset was held for less than a year, the gain is taxed like ordinary income.

 

   Related Questions in Managerial Accounting

  • Q : Information that a manager need to make

    What is the various information that a manager need to make a decision?

    		•
  • Q : Avoidable interest The amount of

      The amount of interest that an organization would have avoided if it had not made the expenditures for an asset. Avoidable interest is calculated when an entity is self- constructing an asset. The cost of the asset can include material, labor, and overhead plus some interest. The c

    		•
  • Q : Human relation discuss the limitations

    discuss the limitations of human relations approaches to management

    		•
  • Q : Performance evaluation and

    Write down a short note on the Performance evaluation and control in decision making process?

    		•
  • Q : Define Cost Accounting Cost Accounting

    Cost Accounting: The Cost accounting is an approach to evaluate the overall costs which are related with conducting business. It is generally based on standard accounting practices, cost accounting is one of the tools which managers u

    		•
  • Q : Define Job Costing Job Costing : It is

    Job Costing: It is an order-specific costing method, utilized in situations where each job is distinct and is executed to the customer's specifications. Job costing includes keeping an account of direct and in-direct costs.

    Q : Define Support Costs Support Costs :

    Support Costs: Costs of activities are not directly related with the production. Typical illustrations are the costs of automation support, postage, communications, process engineering, and purchasing.

    		•
  • Q : Capital gain The increase in value that

    The increase in value that the owner of a capital asset receives when the asset is sold. The owner pays tax on that gain or increases, at a lower rate if the assets that are sold are capital asset, such as factory buildings, rather than assets that are sold in the nor

    		•
  • Q : Relevance-accounting information What

    What do you mean by the term relevance which is accounting information?

    		•
  • Q : Balloon payment The final payment in a

    The final payment in a partially amortized loan. The balloon payment repay the entire remaining principal and is usually larger than previous payments on the loan. Loan that is set up with balloon payments allow the borrower to make the purchase and have a lower payme

    		•