Debate about a national health care plan

Assignment Help Financial Accounting

Reference no: EM13744747

Burt is the custodian at Quaker Inn, an S corporation that has paid him bonuses over the years in the form of shares in the corporation. Burt now holds 276 shares in Quaker Inn.

While listening to a television debate about a national health care plan, Burt decides that the company’s health coverage is unfair. He is concerned about this because his wife, Dora, is seriously ill.

During the second week in December, Burt informs Quaker’s president that he would like a Christmas bonus of $75,000 cash, or else he will sell 10 shares of his stock to one of his relatives, a nonresident alien. The resulting loss of the S election would trigger about $135,000 in federal corporate income taxes for the current year alone. How would you defend Burt’s position? Explain.

Reference no: EM13744747

Questions Cloud

Heighest amount of net income in an inflationary environment : For each of the following situations, fill in the blank with FIFO, LIFO, or weighted average: would produce the heighest amount of net income in an inflationary environment. would produce the highest amount of assets in an inflationary environment.

Compute the missing amounts in marriott balance sheets : The following balance sheet information (in $ millions) comes from the Annual Report to Shareholders of Marriott International Inc. for the 2008 fiscal year. (Certain amounts have been replaced with question marks to test your under- standing of bala..

Cultural problems do not impede : 1) Assume you are a manager in a multinational company that needs to send a team of three to five people to Saudi Arabia for about two weeks to investigate the feasibility of selling your products there. What advice would you give them to help assure..

Review the provisions of the sarbanes-oxley act : Review the provisions of the Sarbanes-Oxley Act of 2002 to address the accounting scandals in the late 1990s and early 2000s (Enron, WorldCom, etc.). Identify the provisions that you believe made the most significant impact.

Debate about a national health care plan : Burt is the custodian at Quaker Inn, an S corporation that has paid him bonuses over the years in the form of shares in the corporation. Burt now holds 276 shares in Quaker Inn.

Focus on continuous improvement processes : Many organizations focus on continuous improvement processes to aid efficiency improvement, reduce waste, and/or maximize profits. In your posting, discuss three of the continuous improvement foci areas you have experienced in your job or organiz..

What challenges do you anticipate in organization : How do you think business analytics can help your current organization with their decision-making processes. What challenges do you anticipate in getting your organization to implement and utilize business analytics

What project areas need to be assessed : What project areas need to be assessed in a readiness process? What is included (and not included) during the stabilization timeframe - Why is knowledge transfer important to the long-term stability of the ERP system? What are the 5 areas addressed..

Stock dividend when the market value of each share : A corporation had 41000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors declared a 25% stock dividend when the market value of each share was $25.

User Account

All Pages