ABSTRACT
Modern corporation accounting requires that, theory a sharp line of distinction should be drawn between outlays which may be considered a part of the regular working expenses, and those which are chargeable to an increased investment in the business. The foreign shareholders have frequently complained of this policy, though experience has shown it to be an essential element in the present strength of that company. "The Blank Trading Company" the people will suppose was incorporated for the purpose of importing and selling fancy goods. In the present instance it is proper to say that fancy goods are of uncertain value, yet one may assume that The Blank Trading Company deals in the more stable kinds. In the present instance, it is assumed that this has been the practice, and that the actual value of the property by appraisal is $15,000. The sales are stated to have amounted the preceding year to $350,000.
