In the aggregate accounts, the basic accounting individuality necessitates nominal returns to correspond to nominal expenses that comprises gross operating surplus/gross return to capital, which supplies compensation for the providers of capital inputs, eliminating the difference between nominal returns and nominal noncapital expenditures
by considering compensation for capital inputs as an expenditure (it is conveyed as a value that cannot without difficulty be divided into quantity and price elements).
1367(a)(2) requires the shareholder to reduce stock basis by distributions, losses, and "any expense of the corporation not deductible in computing its taxable income and not properly chargeable to capital account." (4) The regulations state that fines, penalties, and expenses related to tax-exempt income qualify as nondeductible, noncapital expenditures
. (5) The regulation does not mention the Sec.
This schedule is to present most of the data from the governmental fund operating statement, as well as debt service expenditures expressed as a ratio/percentage of total noncapital expenditures
4 The rate of return to capital is the firm's earnings net of the noncapital expenditures
and the allowed expenditures on capital divided by the value of the capital stock.
The budget must include both capital and noncapital expenditures
. It must reflect the resources required to comply with contractual obligations.
3 The rate of return to capital is the firm's earnings net of the noncapital expenditures
and allowed expenditures on capital divided by the value of the capital stock.