...Chapter 16 - Corporate Operations Chapter 16 Corporate Operations SOLUTIONS MANUAL Discussion Questions 1. [LO 1] In general terms, identify the similarities and differences between the corporate taxable income formula and the individual taxable income formula. Similarities: Both start with the gross income (income after exclusions) for the taxable year. Both formulas reduce gross income by deductions to determine taxable income. Both formulas apply tax rates to taxable income to determine the tax liability. Finally, both formulas reduce the tax liability by credits and tax payments to determine taxes due or the refund. Both formulas include are allowed to take deductions for business expenses to come to taxable income. Differences: Individuals distinguish deductions between for and from AGI deductions and they report adjusted gross income. Corporations don’t distinguish deduction types and don’t report adjusted gross income. This means corporations don’t itemize deductions nor do they deduct standard deductions. Finally, unlike individuals corporations don’t deduct personal exemptions. 2. [LO 1] Is a corporation’s choice of its tax year independent from its year-end for financial accounting purposes? No. The tax year must be the same year as it uses for financial accounting. 3. [LO 1] Can taxable corporations use the cash method of accounting? Explain. The three types of overall accounting methods which are available to corporations are accrual, cash, and hybrid. Generally...
Words: 21680 - Pages: 87
...obligates himself to transfer the ownership of and to deliver a determinate thing and the other to pay therefor a price certain in money or its equivalent. Delivery and payment in a contract of sale are so interrelated and intertwined with each other that without delivery of the goods there is no corresponding obligation to pay. The two complement each other. It is clear that the two elements cannot be dissociated, for the contract of purchase and sale is essentially a bilateral contract, as it gives rise to reciprocal obligations. (Pio Barretto Sons, Inc. vs. Compania Maritima, 62 SCRA 167). Neither is the delivery of the thing bought nor the payment of the price necessary for the perfection of the contract of sale. Being consensual, it is perfected by mere consent. Contract to sell exclusive right and privilege to purchase an object. a bilateral contract whereby the prospective seller, while expressly reserving the ownership of the subject property despite delivery thereof to the prospective buyer binds himself to sell the said property exclusively to the prospective buyer upon fulfilment of the condition agreed upon, that is, full payment of the purchase price. Absent a proviso in the contract that the title to the property is reserved in the vendor until full payment of the purchase price or a stipulation giving the vendor the right to unilaterally rescind the contract the moment the vendee fails to pay within the fixed period, the transaction...
Words: 3885 - Pages: 16
...Chapter One Introduction, Products & Offerings of Prime Bank Limited 1. Introduction The Jews in Jerusalem introduced a kind of banking in the form of money lending before the birth of Christ. The word 'Bank' was probably derived from the word 'bench' as during ancient time Jews used to do money -lending business sitting on long benches. First modern banking was introduced in 1668 in Stockholm as 'Svingss Pis Bank’, which opened up a new era of banking activities throughout the European Mainland. In the South Asian region, the Afghan traders popularly known as Kabuliwallas introduced early banking system. Muslim businessmen from Kabul, Afghanistan came to India and started money lending business in exchange of interest sometime in 1312 A.D. They were known as 'Kabuliwallas'. The number of banks in all now stands at 48 in Bangladesh. Out of the 48 banks, 4 are Nationalized Commercial Banks (NCBs), 30 local private commercial banks, 9 foreign banks and the rest five are Development Financial Institutions (DFIs). Sonali Bank is the largest among the NCBs while Pubali is leading in the private ones. Among the 9 foreign banks, Standard Chartered has become the largest in the country. Besides the scheduled banks, Samabai (Cooperative) Bank, Ansar-VDP Bank, Karmasansthan (Employment) Bank and Grameen bank are functioning in the financial sector. The number of total branches of all scheduled banks is 6,038 as of June 2000. Of the branches, 39.95 per cent (2,412) are located...
Words: 11827 - Pages: 48
...Gannett? Does it make sense at 2.7 billion. 2. Assuming the Gannett acquisition goes through, estimate CCI’s (1 ½ years) and long term (4 ½ years) funding needs. How much of each funding need must be met through external financing? 3. What constraints do they face in satisfying CCI’s funding needs? Assume a 65% floor on CCIs economic stake” 4. Analyze the proposed solutions. What is a Felines Prides security? What are the advantages/disadvantages to firms using this security? Decompose this security into its debt and equity components. What, economically, is a firm doing when it issues a Felines prides security.? 5. What solution seems to satisfy the financing constraints determined above and why? Guidelines for discussion What changes are occurring in the cable industry? Why has CCI undertaken undertaken so many acquisitions recently? The Gannett acquisition is still under negotiation . In this acquisition a positive NPV project at a price of $2.7 billion. What constraints does CCI face it meeting its financing needs.What is the menu of financing choices facing them, and the costs and benefits of each choice. How do Felines Prides securities provide benefits of both debt and equity. How does use of them create value for CCI? How can the FP securities be accounted for in calculating the leverage ratio and the Cox familys equity stake in CC? What is the correct value of the familys economic equity stake after the issuance of FPs? ANSWERS 1. Because...
Words: 1725 - Pages: 7
...EXECUTIVE SUMMARY ONGC leads the way when it comes to achieving carbon neutrality within the energy sector. In an effort to do so, it has become the first PSU to achieve emission reduction certificates from the United Nations. Achievements of this sort, coupled with growth, make ONGC the undisputed leader in its business The Company has set many milestones and the government has decided to bestow the “Maharatna” status with increased empowerments and distinctly higher status as a premier Public Sector Undertaking. The company has recorded the highest Net Profit of Rs. 189,240 million. ONGC recorded highest ever production of 62.05 million ton of oil and equivalent gas (MMTOE). For the reporting year 2010-11. This represents a growth of 12% in both turnover and net worth and 13% in net profit over FY-2010. The company continued to pursue its growth strategy despite the fact that global economy was in shambles and the oil industry had been at crossroads since later half of 2008. The growth vehicle of ONGC, “ONGC VIDESH LTD.” With 40 projects in 15 countries sourced 8.87 MTOE of oil and gas in FY 2010: the highest ever. Beyond core activities of E&P, the company’s efforts towards new gas sources are also laudable. CBM production from the pilot Parbatpur, Jharia project has started in January 2010. Environmental clearance from UCG pilot project at Vatsan, Gujarat has also been obtained. The company has also taken lead in the exploration of shale...
Words: 11056 - Pages: 45
...Internship report at a glance Name of the Tropics 1. Chapter One Introduction 2. Chapter Two ❖ An Appraisal of National Bank Ltd. 3. Chapter Three General Banking 4. Chapter Four ❖ Services of National Bank 5. Chapter Five ❖ Foreign Exchange 6. Chapter Six Daily activities of Bank 7. Chapter Seven ❖ Other activities of National bank ltd 8. Chapter Eight ❖ Recommendation & Conclusion. Chapter one Introduction 1.1 An overview of National Bank Ltd. N ational Bank Limited is regarded as the pioneer in the private sector banking of Bangladesh. National Bank started its journey with the noble vision of diversifying banking activities into different activities of client service. The bank is also committed to fulfill its responsibilities to the society and the country. National Bank Limited has its prosperous past, glorious present, prospective future and under processing projects and activities. Established as the first private sector Bank fully owned by Bangladeshi entrepreneurs, NBL has been flourishing as the largest private sector Bank with the passage of time after facing many stress and strain. The member of the board of directors is creative businessman and leading industrialist of the country. To keep pace with time and in harmony with national and international economic activities and for rendering all modern services, NBL, as a financial institution automated...
Words: 8146 - Pages: 33
...Internship report at a glance Name of the Tropics 1. Chapter One Introduction 2. Chapter Two ❖ An Appraisal of National Bank Ltd. 3. Chapter Three General Banking 4. Chapter Four ❖ Services of National Bank 5. Chapter Five ❖ Foreign Exchange 6. Chapter Six Daily activities of Bank 7. Chapter Seven ❖ Other activities of National bank ltd 8. Chapter Eight ❖ Recommendation & Conclusion. Chapter one Introduction 1.1 An overview of National Bank Ltd. N ational Bank Limited is regarded as the pioneer in the private sector banking of Bangladesh. National Bank started its journey with the noble vision of diversifying banking activities into different activities of client service. The bank is also committed to fulfill its responsibilities to the society and the country. National Bank Limited has its prosperous past, glorious present, prospective future and under processing projects and activities. Established as the first private sector Bank fully owned by Bangladeshi entrepreneurs, NBL has been flourishing as the largest private sector Bank with the passage of time after facing many stress and strain. The member of the board of directors is creative businessman and leading industrialist of the country. To keep pace with time and in harmony with national and international economic activities and for rendering all modern services, NBL, as a financial institution automated all its branches with computer network...
Words: 8148 - Pages: 33
...report is prepared to full fledge analysis of an organization. As this is the only field experience that students before entering practically into the market. During our internship we had been rotated different departments as accounts, remittances, car finance, clearing and collection etc. this movement and working provide a completely knowledge of their working to us, they also explained each and every concept to make us clear. This knowledge and practical experience was the thing which help we have completed the internship report. 1.3 Scope of the Study This study carried out on MCB is an effort to introduce the working and operations at MCB among students and others interested in the organization. This study reveals the MCB in terms of its history and background, its departments and their functioning. It also enlightens the techniques, procedures, and programs that are being used at MCB in order to achieve better performance. The analysis of different policies, techniques, and procedures at MCB depicts a true picture of the organization, and its strengths and weaknesses. The evaluation of positive and negative aspects faced by the organization and recommendations and suggestions on the basis of this evaluation brings out the opportunities and threats to the MCB. 1.4...
Words: 13234 - Pages: 53
...Learning Unit 1: Introduction to Entrepreneurship Define and compare entrepreneurship and intrapreneurship. Entrepreneurship: Entrepreneurship is the process of conceptualising, organising, launching and — through innovation — nurturing a business opportunity into a potentially high growth venture in a complex, unstable environment. Entrepreneur: Entrepreneurs are those individuals who discover market needs and launch new firms to meet those needs. They are risk takers who provide an impetus for change, innovation and progress in economic life. Intrapreneurship: Intrapreneurship is the form of entrepreneurship which takes place in existing businesses around new products, services or markets. Intrapreneur: Intrapreneurs are innovative employees who either rejuvenate existing organisations or create new ventures within a corporate structure. Intrapreneurs are also referred to as internal or corporate entrepreneurs. Discuss the entrepreneurial motivation. Push Factors: Poor remuneration Lack of Job advancement Restrictive employers Potential restructuring and / or retrenchment Inability to secure a job Lack of innovation in the current workplace Pull Factors The motivation of profit The need for a challenge and self actualisation The desire for independence The desire to improve one’s community Describe the profile of an entrepreneur. Prominent among the character traits of successful entrepreneurs have the following traits: * * The ability...
Words: 13386 - Pages: 54
...Internship Report ON GENERAL BANKING AND MANAGEMENT INFORMATION SYSTEM (A STUDY ON UNITED COMMERCIAL BANK LIMITED) Course Code: BAN- 400 Course Title: Internship & Viva Prepared To: Md. Abdul Hamid Lecturer Businesss administration department Shahjalal University of Science & Technology, Sylhet. Prepared by: Md. Hedaitul Kabir BBA (Marketing) 4th Batch Reg No-2001731012 Date of submission: 06/11/2007 Shahjalal University of Science & Technology, Sylhet-3114 LETTER OF AUTHORIZATION This is certify that, this internship report on General banking and management information system a study on United Commercial Bank Ltd .Has been prepared by Md Hedaitul Kabir, reg no- 2001731012, Business administration department , 4th batch, sincerely and under my close supervision. I wish his all progress and success. Md. Abdul Hamid Lecturer Business administration department Shahjalal University of Science and Technology ...
Words: 16376 - Pages: 66
...fundamental question: Does the mix of debt and equity affect the value of a business? Assets Existing Investments Generate cashflows today Includes long lived (fixed) and short-lived(working capital) assets Expected Value that will be created by future investments Assets in Place Debt Liabilities Fixed Claim on cash flows Little or No role in management Fixed Maturity Tax Deductible Growth Assets Equity Residual Claim on cash flows Significant Role in management Perpetual Lives Different Value? Different Financing Mix? Aswath Damodaran 2 Approaches to Valuation Discounted cashflow valuation, relates the value of an asset to the present value of expected future cashflows on that asset. Relative valuation, estimates the value of an asset by looking at the pricing of 'comparable' assets relative to a common variable like earnings, cashflows, book value or sales. Contingent claim valuation, uses option pricing models to measure the value of assets that share option characteristics. Aswath Damodaran 3 Valuation Models Asset Based Valuation Discounted Cashflow Models Relative Valuation Contingent Claim Models Liquidation Value Stable Replacement Cost Two-stage Three-stage or n-stage Current Equity Firm Sector Option to delay Option to expand Young firms Option to liquidate Equity in troubled firm Market Normalized Earnings Book Revenues Value Sector specific Undeveloped land Equity Valuation...
Words: 7096 - Pages: 29
...MEMORANDUM To: The Chief Executive Officer –ABC Inc. From: Vincent Mokwenye, Financial Controller. Subject: Pension Plan Disclosure and Reporting Requirement CC: This brief memo will address the topic of Pension Plans. Specifically, it shall discuss the two basic types of pension plans and the other postretirement plan. Then it shall examine the purpose of pension plan reporting requirements, their effect on the financial statements, and the significance of each type of pension plan. It will also examine the positive and negative implications of each of the pension plans. Defined Benefit Pension Plan - A defined benefit plan is a retirement plan set up to pay a fixed annual amount to eligible employees during their retirement. It is called defined benefit because the quarterly or annual contribution is based upon an actuarial determination of what the participants' retirement benefits should be, not on profits. The formulas look at how much money must be contributed in order for there to be enough money to pay a FIXED amount of benefit(s) to recipients in the future. These projections use a reasonable expected rate of return (401kpsp.com, 2012). Defined Contribution Plan- A defined contribution plan is a retirement plan that requires that an individual "account" be set up for each participant in the plan. It is called "defined contribution" because a participant can only contribute a fixed maximum amount to the plan each year. The contributions are not based...
Words: 1342 - Pages: 6
...Settlement Activities (T+2 day) 6.4.1 6.4.2 6.4.3 6.5 Opening of Trading Account Placing the Order to Buy/Sell Collecting Charges Auction Close-out Procedures Introduction As we have already read in the previous chapter, that under rolling settlement, all trades executed on a trading day are settled X days later. This is called ‘T+X’ rolling settlement, where ‘T’ is the trade date and ‘X’ is the number of business days after trade date on which settlement takes place. The rolling settlement prevailing in India is T+2, implying that the outstanding positions at the end of the day ‘T’ are compulsorily settled 2 days after the trade date. Rolling settlement was first introduced in India by OTCEI. As dematerialization took off, NSE provided an option to settle the trades in demat securities on rolling basis. In January 2000, SEBI made rolling settlement compulsory for trades in 10 scrips selected on the basis of the criteria that they were in the compulsory demat list and had daily turnover of about Rs.1 crore or more....
Words: 6843 - Pages: 28
...Introduction Hiring / Recruitment process and policies implemented within any organization is every important factor as far as the ultimate success of the organization is concerned. Implementation of recruitment policy & procedures within any organization is very important for long term Employee retention and satisfaction. Good HR polices within any organization gives many benefits such as; a. In time availability of competent human resource. b. Attracting competent human resource within or outside the organization. c. Tracking of recruitment process. Main emphasis of the project is to highlight and to find out the HR policies / practices being followed within the bank and the good practices for Employee retention being used in industry as a whole. Following traits will be analyzed within the target Bank; a. Over-all job satisfaction level b. Evaluation system c. Training and work load d. Supervisor behavior e. reprimands and discussion sessions f. Achievements are Acknowledge and rewarded or not. g. Quality and service standards h. Over-all quality evaluation gives a high standard of the organization Askari Bank aims to be organized for consistently providing service quality to its customers. Customers have expectations or standards for quality delivery of service and they constantly assess the bank against other competitors. For service performance to be...
Words: 5787 - Pages: 24
...CHAPTER ONE 1. Introduction Internship is an assigned work performed usually at the end of a course curriculum. The goal of internship is to apply one’s theoretical knowledge in practical fields. Thus internship is a pragmatic application of knowledge and achieving practical experience by engaging oneself in different and distinct sectors of work. In normal sense, we know that internship is a practical knowledge of specific think. But in broad, it means to acquire knowledge and information getting directly by searching. That is to work in respectively fields practically according to the theoretical knowledge is called internship. It is the application of knowledge, which a candidate has gathered by academic subjects. After completing the academic courses a person may be appointed to an eligible post by the theoretical and practical knowledge. To invent something new by proper investigation or discussion of a known and unknown matter and to make a right decision by the knowledge is the main theme of internship. So, internship is standard method taken for searching knowledge i.e. it is the combination of theoretical and practical knowledge 2. Objectives of the study The main purpose of this study is to investigate and observe into the loan disbursement and recovery of Sonali Bank Limited, Sopura Branch, Rajshahi and to provide some suggestions to improve its performance. However, followings are some of the specific objectives of...
Words: 9317 - Pages: 38
