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Wed 4 Mar, 2015 08:11 am
Hi there,
I am a student worker in an engineering and consulting services.
My question is about accounting,
lets assume that the revenue is 2million dollars at the end of 2015 from the services. And the company invested to a land for 1.million $. And there are other operating costs lets say 800.000$ (cost of sales) as well employees, rent etc..
When calculating the profit, where does this investment goes? How much has the company profited in 2015? is it 200.000$ or 1.2million$? Thus how does the income tax is calculated in this situation?
Thanks!