When determining the owner's target income,you must consider a reasonable salary for the time spent running the business,less the depreciation of assets.

Question

Quizplus · Accepted Answer

Determining the owner's target income involves calculating the desired profit or earnings from the business, not subtracting depreciation of assets. Depreciation is an expense related to the reduction in value of assets over time and is considered separately in financial statements.

When Determining the Owner's Target Income,you Must Consider a Reasonable