Borrow: Fixed Assets 18000
Credit: Non-operating Income 18000
For public welfare donations, the tax law treatment: recognition of deemed sales revenue and deemed sales cost, with the deemed sale of income to increase the taxable income, the accounting profit to calculate the donation limit, and the cost of donations (deemed sales cost + deemed sales of sales tax) for comparison If the donation cost is higher than the donation limit, increase the taxable income.
Expanded information:
Note:
If the value of the assets donated is large, you can credit deferred income -Gain on acceptance of donated non-monetary assets. And at the end of each period, according to the portion of deferred income that should be credited to taxable income in the current period as confirmed by the tax authorities, debit the account of Deferred Income - Gain on Acceptance of Donated Non-Monetary Assets, and credit the account of Non-Operating Income - Donation Profit.
Deferred income refers to income or gains that have yet to be recognized, or can be said to be temporarily unrecognized gains, and is an application of the accrual basis of income recognition. Compared with international accounting standards, the scope of application of deferred revenue is very limited in China's accounting standards and Enterprise Accounting System, which is mainly reflected in the relevant contents of the leasing standards and revenue standards.
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