Legal Definitions - minuend

Minuend

The minuend refers to the initial number or quantity from which another number or quantity is subtracted. In legal and financial contexts, it represents the starting amount before any deductions are made, leading to a final balance or remainder.

• Example 1: Estate Settlement

  Imagine a deceased person's estate is valued at $1,000,000. Before distributing funds to heirs, the estate must pay off $200,000 in outstanding debts and taxes. In this scenario, the $1,000,000 initial valuation of the estate is the minuend, as it is the total amount from which the debts and taxes will be subtracted to determine the net amount available for beneficiaries.

• Example 2: Calculating Outstanding Loan Balance

  A business takes out a loan for $500,000. Over time, they make several payments totaling $150,000. To find the remaining amount owed, the original loan amount of $500,000 serves as the minuend. It is the starting principal from which all subsequent payments are subtracted to calculate the current outstanding balance.

• Example 3: Determining Net Profit for Tax Purposes

  A small law firm reports gross revenue of $750,000 for the year. To calculate their taxable net profit, they must subtract $250,000 in operating expenses (salaries, rent, utilities, etc.). Here, the $750,000 in gross revenue is the minuend, representing the total income before any expenses are deducted to arrive at the firm's profit.