Consider yourself a regulatory tax expert faced with the task of proposing a uniform standad of profit estimation. Given two options: Economic profit estimation and Accounting Profit Estimation. Which one would you establish as the standard for calculating profits? Why?© BrainMass Inc. brainmass.com October 10, 2019, 1:49 am ad1c9bdddf
Clearly economic profit. The reason is because economic profit includes opportunity cost, and that is more reasonable for tax purposes. For example, if a person volunteers for some organization which ...
Profit estimation is examines for tax.