...Federal Tax Notes Week 3 Chapter 4 Notes * Capital Gain/Losses * Short term and long term * Example: bought stock in Google on 9/9/14 and sold it today 9/9/15. Is that long term or short term? * Short term * How to figure it out if it is long term or short term: * Add one day to purchase date, ex: 9/9/14 9/10/15 LONG TERM * Net short term (5) * Net long term 12 * Long term capital gain of 7 * Individual * A capital loss of (7,000) * What do we do with this capital loss? * You can use 3,000 against ordinary income * What do we do with the remaining 4,000? * We can carry it forward, until used * We have 6,000 capital gain in the next year * We use the reaming 4,000 * We have 2,000 remaining * Not classified as capital gain/loss if (2 exceptions): * Inventory * Property used in a trader business (section 1231 asset) * Computing Gain/Loss from property transaction * Sales price – cost = gain/loss * Translate into tax terms * Amount realized – adjusted basis = realized gain/loss (economic) or recognized gain/loss (tax return) * Costs + improvements – recoveries (depreciation) = adjusted basis * Two Types of Life Insurance ...
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...17-26.In the current year, Azure Company has $350,000 of net operating income before deducting any compensation or other payment to its sole owner, Sasha. In addition, Azure has interest on municipal bonds of $25,000. Sasha has significant income from other sources and is in the 39.6% marginal tax bracket. Based on this information, determine the income tax consequences to Azure Company and to Sasha during the year for each of the following independent situations. a. Azure is a C corporation and pays no dividends or salary to Sasha. b. Azure is a C corporation and distributes $75,000 of dividends to Sasha. c. Azure is a C corporation and pays $75,000 of salary to Sasha. d. Azure is a sole proprietorship, and Sasha withdraws $0. e. Azure is a sole proprietorship, and Sasha withdraws $75,000. 17-28. Benton Company (BC) has one owner, who is in the 33% Federal income tax bracket. BC’s gross income is $395,000, and its ordinary trade or business deductions are $245,000. Compute the Federal income tax liability on BC’s income for the current year under the following assumptions: a. BC is operated as a proprietorship, and the owner withdraws $100,000 for personal use. b. BC is operated as a corporation, pays out $100,000 as salary, and pays no dividends to its shareholder. c. BC is operated as a corporation and pays out no salary or dividends to its shareholder. d. BC is operated as a corporation, pays out $100,000 as salary to its shareholder, and pays out the remainder...
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...Team 7 Atlantic Computer2011. december 16. Atlantic Computer Case Study Group 7 Olivér Szabó Péter Hrobár Written by János Wicha 1 Team 7 Atlantic Computer2011. december 16. Recommendation: Use the value-in-use pricing method. 2. Recommended sales price for server: 5.500 USD/Unit 3. Recommended charge for PESA Harware as a Service (HaaS): 280 USD/month for 3 years contract. 4. For sales force new motivation package, 10% commission from every sold server and 5% from monthly fee/ month. 1. Problem statement: Jason Jowers has to develop a pricing strategy for the new Tronn server and the PESA software before the SME trade show. Server Market Overview: ● ● ● High Performance Servers ○ For Complex Applications ○ Next year marker potential 200.000 units ○ 3%/year Growth possibilities. ○ Atlantic Computer has a 20% market share. Basic servers ○ For single task, without the need of high computing performance ○ Next year market potential 50.000 units ○ Growth potential 36% till 2003 Competitor ○ Ontario Computer Inc. ZINK server is a main brand in the low end market On-line sales Low prices Company Overview: Atlantic Computer is a producer of High Performing Servers Jason Jowers joined AC four months ago and his main task is to develop the pricing strategy of the new Tronn Server with PESA support. Tronn is developed for low end market. PESA (Performance Enhancer Server Accelerator) is a software tool that was developed to allow Tronn to perform 4 times...
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...She handed me a five dollar bill through the car window, then turned and walked away. I don’t know her name, nor where she was going—the encounter was so brief—but I know I will never forget that lady stranger who generously saved me from a lot of frustration and prevented me from walking a mile or more to my destination. The scene was a downtown public parking lot. My husband, Leo, and I were already a half hour late for a statewide conference on the status of African American families and children. (CSAAFC). We had taken the wrong fork in the expressway, and found ourselves deadlocked in traffic that was backed up for four miles due to a serious accident. I told Leo to go the other way, but he didn’t. . . When we finally were able to exit, we tried to find parking in the designated free garages and lots near the hosting hotel. But, by now, they were all full. Not expecting this, neither of us had brought change; all we had was a twenty dollar bill. When we did find some space in a lot two blocks away from the conference, we were unable to pay the automated box for our slot; we needed five dollars. There was, handily, an ATM that charged $4.50 to get change for a twenty. But, there was no guarantee that there would be a five spot; we might have gotten just two tens for change. That wouldn’t have helped the situation. Besides, $4.50 just seemed like highway robbery. I wasn’t willing to pay it. We asked several people approaching the pay box if they could change a twenty. “No”...
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...İllik Hesabat Ìöíäÿðèæàò / Contents Ìöøàùèäÿ Øóðàñû Ñÿäðèíèí ìöðàæèÿòè Letter of the Chairman of Supervisory Board Èäàðÿ Ùåéÿòè Ñÿäðèíèí ìöðàæèÿòè Letter of the Chairperson of Executive Board 2008-æè èëäÿ Àçÿðáàéæàí èãòèñàäèééàòû Economy of Azerbaijan in 2008 2008-æè èëäÿ Àçÿðáàéæàí áàíê ñåêòîðó Banking sector of Azerbaijan in 2008 Áàíê Ðåñïóáëèêà ùàããûíäà öìóìè ìÿëóìàò General information about Bank Respublika 2008-æè èëäÿ Áàíêûí ÿñàñ ìàëèééÿ ýþñòÿðèæèëÿðè Main financial indicators of the Bank in 2008 Êðåäèò ñèéàñÿòè Loan policy Ðèñêëÿðèí èäàðÿ åäèëìÿñè Risk management Áåéíÿëõàëã ÿìÿêäàøëûã International cooperation Ìöøòÿðè õèäìÿòè âÿ ìöøòÿðèëÿðëÿ ÿëàãÿëÿð Customer service and customer relations Ìàðêåòèíã ôÿàëèééÿòè Marketing activity Èíñàí ðåñóðñëàðû Human resources Тюрflмfl ширкflтлflр Subsidiaries Консолидасийа олунмуш малиййfl щесабатлары Consolidated Financial Statements 5 7 9 13 17 21 27 31 35 39 43 47 51 55 3 Èëëèê ùåñàáàò / Annual report Ùþðìÿòëè õàíûìëàð âÿ æÿíàáëàð, 2008-жи или Азflрбайжанын сосиал-игтисади щflйатында, банк секторунун вfl Банк Республика-нын инкишафында даща бир flламflтдар ил кими гейд етмflк олар. Ил flрзиндfl юлкflдfl Цмуми Дахили Мflщсулун реал щflжми 10,8%, банк секторунун цмуми активлflри исfl 52,8% артмышдыр. Дцнйадакы игтисади бющрана бахмайараг бу эюстflрижилflр Азflрбайжан игтисадиййатынын вfl банк секторунун инкишафыны эюстflрир. Юлкflдfl апарыжы банклардан олан Банк Республика 2008-жи илдfl инкишафыны давам етмишдир вfl бир чох малиййfl эюстflрижилflри...
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...Pharmaceutical and Medical Products Practice India Pharma 2020 Propelling access and acceptance, realising true potential The report is furnished to the recipient for information purposes only. Each recipient should conduct its own investigation and analysis of any such information contained in this report. No recipient is entitled to rely on the work of McKinsey & Company, Inc. contained in this report for any purpose. McKinsey & Company, Inc. makes no representations or warranties regarding the accuracy or completeness of such information and expressly disclaims any and all liabilities based on such information or on omissions therefrom. The recipient must not reproduce, disclose or distribute the information contained herein without the express prior written consent of McKinsey & Company, Inc. 12 Executive summary India Pharma 2020: Propelling access and acceptance, realising true potential 13 Global pharmaceutical markets are in the midst of major discontinuities. While growth in developed markets will slow down, emerging markets will become increasingly important in the coming decade. The Indian pharmaceuticals market, along with the markets of China, Brazil and Russia, will spearhead growth within these markets. The Indian pharmaceuticals market has characteristics that make it unique. First, branded generics dominate, making up for 70 to 80 per cent of the retail market. Second, local players have enjoyed a dominant position driven by formulation...
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...Payroll and Business Tax Accounting Chapter 1 – The Need for Payroll and Personnel Records Fair Labor Standards Act (FLSA) or Federal Wage and Hour Law – A federal statute of the United States that was established in 1932 by Senator Hugo Black. This statute “contains provisions and standards concerning minimum wage.” It also covers equal opportunity requirements so that everyone is paid a fair wage regardless of race or sex. It covers overtime and holiday pay, record keeping, and child labor. (Textbook) These standards affect “employees in the private sector and in federal, state, and local governments. Covered nonexempt workers are entitled to a minimum wage.” (www.dol.gov/whd/flsa) It also started “the forty-hour work week, established a national minimum wage, guaranteed ‘time-and-a-half’ for overtime in certain jobs, and prohibited most employment of minors in ‘oppressive child labor.’” (Wikipedia) Provides enterprise and individual employee coverage. Federal Insurance Contributions Act (FICA) – an employment tax that “imposes two taxes on employees and two taxes on employers.” These taxes fund old-age, survivors, and disability insurance program (OASDI) and hospital insurance (HI). (Textbook) The FICA “tax is a United States federal payroll (or employment) tax imposed on both employees and employers to fund Social Security and Medicare —federal programs that provide benefits for retirees, the disabled, and children of deceased workers.” (Wikipedia) This act requires...
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...Court of the United States UNITED STATES, Petitioner, v. FIOR D'ITALIA, INC. No. 01-463. Argued April 22, 2002. Decided June 17, 2002. Restaurant challenged use by the Internal Revenue Services (IRS) of aggregate method to determine, assess, and collect its share of Federal Insurance Contribution Act (FICA) taxes on tips received by its employees. The United States District Court for the Northern District of California, 21 F.Supp.2d 1097, granted summary judgment for restaurant, and IRS appealed. The Court of Appeals for the Ninth Circuit, 242 F.3d 844, affirmed, and certiorari was granted. The Supreme Court, Justice Breyer, held that: (1) the law authorized the IRS to base its assessment upon its aggregate estimate of all the tips that the restaurant's customers paid its employees; (2) such a method is not precluded by negative implication from statutes which authorize the IRS to use methods of estimation for determining income tax liability and which authorize the Secretary of the Treasury to adopt regulations that prescribe mechanisms for employers to adjust FICA tax liability; (3) fact that an aggregate estimate will sometimes include tips that should not count in calculating the FICA tax the employer owes did not render use of...
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...NewCorp Scenarios Legal Brief Many organizations in the United States of America do not have the budget for staff counsel within their company. NewCorp is a business that has found themselves in legal matters and is seeking an assessment on ways to handle these circumstances from a consultant in the organization before refering matters to an attorney and incur costs. This assignment reviews three scenarios involving NewCorp. We will examine liabilities the organization and complainant are subject to as well as any statutory or case laws relevant to support the findings. Legal Scenario One Legal scenario one explains that NewCorp relocated an employee named Pat to manage the real property division of the business. After 90 days of employment NewCorp determined that Pat was not an appropriate fit for the position and terminated him with 30 days of severance pay. Pat feels as though he was wronged because he was not given the opportunity to improve through a corrective action plan as promised upon hire. Because of this, Pat believes that NewCorp should not be able to discharge him at will and believed that this action was taking place because of statements made outside the workplace. NewCorp and Pat both have rights in this scenario. Fortunately for NewCorp they are located in Vermont that is considered an “at will” state. This means that an employer can terminate an employee for any reason at any time as long as it does not relate to a Title VII protected class that includes...
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...Exercises & Problems Week 4 Exercise E10-6 Payroll Tax Expense 352.16 FICA Payable 198.40 Federal Unemployment Taxes Payable 19.84 State Unemployment Taxes Payable 133.92 (To record Payable Taxes for the week) Exercise E 10-8 1. True 2. True 3. False 4. True 5. False 6. False 7. True 8. True 9. True 10. True Exercise E10-18 A. Jan.1, 2011 Cash 562,613 Discount on Bonds Payable 37,387 Bonds Payable 600,000 (To record sale of bonds at discount) B. Jul.1, 2011 Bond Interest Expense 28,131 Discount on Bonds Payable 1,131 Cash 27,000 (To record payment of bond interest and amortization of bond discount) C. Dec.31, 2011 Bond Interest Expense 28,187 Discount on Bonds Payable 1,187 Bonds Interest Payable 27,000 (To record account bond interest and amortization on bond discount) Problem 10-3A A...
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...Complete Exercises E10-6, E10-8, & E10-18. Complete Problems 10-3A &10-6A E10-6 Payroll tax expense 352.16 FICA taxes payable 198.40 Federal unemployment taxes payable 19.84 State unemployment taxes payable 133.92 E10-8 1. True 2. True 3. False 4. True 5. False 6. False 7. True 8. True 9. True 10. True E10-18 A. Jan.1 cash 562,613 Discount on the bonds payable 37,387 Bonds payable 600,000 B. Jul. 1 Bond interest expense 28131 Discount on bonds payable 1131 Cash 27,000 C. Dec.31 Bond interest expense 28187 Discount on bonds payable 1,187 Bonds interest payable 27,000 10-3A A. Cash 600,000 Bonds payable 600,000 B. Dec.31 bond interest Exp. 27,000 Bond interest payable 27,000 C. Balance Sheet Long term liabilities, bonds payable and less: discount on bonds payable 600,000 D. May.1 Bond interest Exp. 27,000 Cash 27,000 E. Nov.1 Bond interest Exp. Bond interest payable 27,000 F. Nov.1 bonds payable 600,000 Premium bonds payable 0 Loss on the bonds redemption 12,000 Cash 612,000 10-6A A. July.1 Cash 2,000,000 Bonds payable 2,000,000 B. Bond carrying value Issue date 2,271,813.00 2,262,686.00 ...
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...Wal-Marts outlook wary Wal-Mart reported that a lower tax rate boosted its net income by 8.6 percent during the fourth quarter, but the company offered a tempered forecast going forward as its lower-income shoppers struggle with rising gas prices, delayed income tax refunds and higher payroll taxes. Wal-Mart said that February started "slower than planned" but noted that it was largely due to the Internal Revenue Service's decision to delay accepting tax returns by eight days until Jan. 30 because of late Congressional action to tackle the budget crisis last year. Which resulted in Wal-Mart customers cashing about $1.7 billion in income tax refunds year to date, compared with $4 billion for the same time period a year ago, Wal-Mart said. Shoppers last year had used refund money to buy TVs ahead of the Super Bowl, the company said, but this year, the retailer said it's not sure how customers will use the refunds. Going forward, Wal-Mart said it's unclear how the payroll tax, implemented last month when the U.S. government allowed a temporary 2 percentage point cut in Social Security taxes to expire last month, will affect spending. Nearly all working Americans are taking home less pay and that payroll tax increase will equate to $70 per month less in take home pay for Wal-Mart shoppers, assuming an average annual income of $42,500. Also, Wal-Mart said it still is grappling with allegations that surfaced last April that it failed to notify law enforcement that company officials...
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...today’s middle aged and younger workers. Those who retired in the 196’s and 1970’s received real benefits of three or four times the amount that they paid into the system, which is way better than if they had invested the funds privately. Future retirees can expect to earn a real rate of return of about 2 percent more on their Social Security tax dollars, which is way less than what they would earn from personal investments. I believe today, we should be permitted to invest our Social Security tax dollars. Because of the shorter life expectancy of blacks, the Social Security system adversely affects their economic welfare. Compared with Whites and Hispanics, blacks are far more likely to pay a lifetime of payroll taxes and then die without receiving much in the way of benefits. On the other hand, Social Security is favorable to Hispanics because of their above average life expectancy and the progressive nature of the benefit formula. As a result, Hispanics derive a higher return than whites and substantially higher than blacks. I do not believe that the Social Security system promotes income equality because Social Security is a payroll tax and it is taxed on wages over $400 per month. If you are self-employed you have to pay both shares, yours plus...
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...Understand what you want to get from running your own business Identify what you want to get out of running your own business. You should consider what you expect to achieve in the short term and the medium term. I hope that running my own business will be an ongoing challenge that will give me a sense of satisfaction, achievement and fulfillment. I want utilise all my talents and abilities. I desire to work with food, something I am passionate about and use my creativity to make my business stand out. I would like to gain independence and control of my own future and more power over the way that work fits into my lifestyle. In the next six months I aim to be making enough money through my business to reduce my hours at my other job to part time hopefully. I hope to achieve this level of income through supplying hampers to a number of large groups of self-catering holiday lets in North Cornwall. In the next five years I hope to find premise for café/deli and large-scale hamper production to expand the supply and distribution of hampers. I would also like to expand business to other holiday destinations. Through these developments I would like to be able to support myself solely through the income of my business. Understanding the risk factors involved in self employment Identify and briefly describe the main risks involved in self-employment. In entering in to self-employment I will be giving up steady and guaranteed employment and thus guaranteed income and...
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...Intermediate Accounting II Acct. 551 E 13-1, 13-2, 13-8, 13-13, 13-19 13-1 A. Current B. Current C. Current D. Current E. Foot note Disclosure F. Current G. Current H. Current I. Current J. Current K. Current L. Current M. Current N. Current O. Foot note disclosure P. Current or Long-term 13-2 a. Sept. 1 Purchase 50,000 Account Payable 50,000 Oct. 1 Account Payable 50,000 Notes Payable 50,000 Oct. 1 Cash 75,000 Discount Notes Pay. 6,000 Notes Payable 81,000 b. Dec. 31 Interest Expense 1,000 Interest Payable 1,000 Dec. 31 Interest Expense 1,500 Discount on Notes Payable 1,500 c. Notes Payable 50,000 Interest Payable 1,000 51,000 Notes Payable 81,000 Less Discount 4,500 76,500 13-8 Salaries and Wages Expense 480,000 Withholding Taxes Payable 80,000 FICA Taxes Payable 28,040 Union Dues Payable 9,000 Cash 362,960 Payroll Tax Expense 29,440 FICA Taxes Payable 28,040 FUTA Taxes Payable 560 SUTA Taxes Payable 840 13-13 1. Maverick Inc. reports a liability of 800,000 at 12/31/12 2. The insurance recovery is a gain contingency that is not recorded until received. The loss should be accrued for 6,000,000. 3. It is a gain contingency. 13-19 a. 1. 318,000/87,000=3.66 2.820,000/200,000 + 170,000/2=4.43 3.1,400,00/95,000=14.74 4.210,000/52,000=4.04 5.210,000/1,400,000=15% 6.210,000/488,000=43% b. 1. No effect 2. Reduce...
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