MGT 135 Lecture Notes - Lecture 15: Intangible Asset, Asset

• School: UCSD
• Department: Management, Rady School of
• Course: MGT 135
• Professor: John Anderson

Document Summary

Computing corporate taxable income: use form 1120 p. 11-5 incorporate new act effective 2018. Taxable income = gross income allowable deductions. Where gross income = sales, services, interest, investment income, etc. Where deductions = ordinary and necessary business expenses, and that includes cost recovery deductions. Ch7: they come in form of depreciation (if we talking about tangible asset). Or depletion if we talking about asset used in natural resource extraction. Or amortization if the cost recovery deduction is regarding an intangible asset. Deductions also include from ch 8: property dispositions. Property dispositions occur at a taxable gain or loss. Deduction for charitable corporations to encourage corporations to donate. e. g. corporation sponsor for a walk to raise funds for cancer research. Annual deduction is limited to 10% of taxable income before the charitable deduction. (contributions that are in excess of this limit are carried forward for 5 years as a deduction against future income.