Reference no: EM131195820
Determine whether the taxpayer in each of the following situations has realized income. Explain why there has or has not been a realization, and determine the amount of income to be reported.
a. Alfredo owns a one-third interest in Bayou Partnership. During the current year, Bayou's taxable income is $45,000.
b. Janet owns a pest-control service. She charges customers $50 per month for basic pest control. Alternatively, customers can pay a lump sum of $500 for one year of basic monthly pest control. During the current year, Janet receives $13,000 in monthly payments and $26,000 in 1-year prepayments.
c. Monte owns 1,000 shares of Ali, Inc., common stock. During the current year, Ali declares and distributes a 20% stock dividend. As a result, Monte receives an addi- tional 200 shares of stock.
d. Rogers Trucking Company owes Big Truck Sales, Inc., $200,000 for the purchase of 3 trucks. Rogers is having a bad year and is unable to make full payment on the debt to Big Truck. Rather than foreclose on Rogers, Big Truck reduces the debt to $170,000 so that Rogers can stay in business.
|
How much federal tax will she owe
: How much federal tax will she owe?- What is her average tax rate?- What is her effective tax rate?- What is her current marginal tax rate?
|
|
Amount of the net new equity
: Pinkel Properties had common stock of $104,193, paid-in capital of $173,519, and accumulated retained earnings of $40,500. Pinkel Properties does not pay dividends. What is the amount of the net new equity raised during the year?
|
|
How could you minimize the potential problems
: What issues might you face if the salespeople accept job offers from your firm? How could you minimize the potential problems? What additional steps would you take before authorizing your firm to extend a job offer?
|
|
Incremental cash flows of a project
: Sunk cost - a cash flow already paid or accrued. These costs should not be included in the incremental cash flows of a project. From an emotional standpoint, it does not matter what investment has already been made.
|
|
Determine the amount of income to be reported
: Determine whether the taxpayer in each of the following situations has realized income.- Explain why there has or has not been a realization, and determine the amount of income to be reported.
|
|
Additional interest in the future periods
: In order to obtain the future value of the principal amount, you calculate what the value at the end of the time period will be assuming the initial investment will earn interest, which is reinvested and will earn additional interest in the future..
|
|
Competitiveness in the global financial services industry
: Reflect on the impact of assessment on your understanding of the Global Financial services industry competition, highlighting the key role of strategic alliances and corporate leadership in sustaining growth through responsible banking.
|
|
Prepare the companys income statement
: Prepare in proper form for 2007 the company's income statement, retained earnings statement, ending balance sheet, and closing entries in its general journal.
|
|
What new key information did you find in your discussion
: What new, key information did you find in your discussion or your research or after reading another Group's Presentation that supported your position?
|