I could be off-base here, but isn't it true that the governmental agencies only care that we pay taxes on what the customer actually paid for the product or service before tax? Maybe I'm oversimplifying something.
Kevin Benton WebEx Communications, Inc. accepts no liability in relation to any personal emails, or any content of any email that does not relate directly to the business of WebEx Communications, Inc. -----Original Message----- From: Derek Atkins [mailto:[EMAIL PROTECTED]] Sent: Friday, June 14, 2002 9:41 PM To: [EMAIL PROTECTED] Subject: Re: Taxes and Discounts: order of operations question More on the problem. I said: > In one way, you always compute the discount off the pretax number, and > compute the taxes off of either the pretax value or "pretax-discount" > value. In the other way, you either compute the tax on > "pretax-discount", or you compute the discount on "pretax+taxes". I'm not convinced I got all the cases right. I actually think there are three (well, four, but two are equivalent) cases: In two cases, you always compute the discount off the pretax number and compute the tax off of either "pretax" or "pretax-discount". In the other cases you always compute the tax off the pretax number, and compute the discount off of either "pretax" or "pretax+taxes". As you can see, computing both tax and discount off of the pretax (the first choice of both options) is the same. But there are still three ways to make this computation: tax discount 1) pretax pretax 2) pretax-discount pretax 3) pretax pretax+taxes (I don't think there is any way to compute the tax off pretax-discount and discount off of pretax+taxes at the same time). Is it reasonable to provide all three options? If not, what are the reasons? If so, how should they be named? -derek -- Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory Member, MIT Student Information Processing Board (SIPB) URL: http://web.mit.edu/warlord/ PP-ASEL-IA N1NWH [EMAIL PROTECTED] PGP key available _______________________________________________ gnucash-devel mailing list [EMAIL PROTECTED] http://www.gnucash.org/cgi-bin/mailman/listinfo/gnucash-devel _______________________________________________ gnucash-devel mailing list [EMAIL PROTECTED] http://www.gnucash.org/cgi-bin/mailman/listinfo/gnucash-devel
