Buy custom Kansas City Zephyrs Baseball Club, Inc
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| Topic: |
Business
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| Number of pages / Number of words: |
2 / 537 |
Essay's paper body
In the books, 100% of the salary is expensed each year.
Players: Only the 80% portion of the salary should be expensed in that accounting year because the remaining 20% is not set aside. (Cash Basis for Accounting)
Owners: 100% of each salary should be expensed each year according to the matching concept...
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(Cash Basis for Accounting)
Owners: 100% of each salary should be expensed each year according to the matching concept.
Decision: No money is set aside, but the asset (the player) has completed the sale of a good. The owners may expense the entire amount of the salary.
Conclusion:
Of the 5 items under dispute, only 2 were chosen in favor of the players
With the accounting changes, both years continue show losses (although not as large as the owners’ original claim)
Profit sharing should be handled contractually
Players are currently paid performance and attendance bonuses
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