Reference no: EM13885308
First determine the tax issue. Then research the issue and determine your conclusion. Finally, write up your results using the following format:
-Issue (Describe the tax issue, i.e., the question that you are researching
-Conclusion (The answer to the tax question)
-Discussion of Reasoning and Authorities
1) Deducting Charitable Contributions.....
Your clients, Sonny and his wife Honey, believe in worshiping Ta-Ra, the Sun God. To practice their religious beliefs, they take a weeklong trip to Hawaii to worship Ta-Ra. The cost of this pilgrimage (including airfare, hotel, and meals) is $2,800. Sonny wants to know if he can deduct the cost of this trip as a charitable contribution.
Research Aids: Kessler, 87 T.C. 1285 (1986)
|
Periodic payments between now and maturity
: You are offered an investment that will pay you $100,000 in five years. There will be no periodic payments between now and maturity. You require a 6% return in order make such investments. You now have all of the variables in order to calculate the _..
|
|
How much money will you have on the date of the last payment
: A friend owes you money. He offers to pay you $1,000 today, $1,000 a year from now and $1,000 exactly two years from now. If 10% is the prevailing rate you expect on your investments, what is the present value of this arrangement? A friend owes you m..
|
|
Pretax cost savings do we require for project to profitable
: A proposed cost-saving device has an installed cost of $630,000. The device will be used in a five-year project but is classified as three-year MACRS property for tax purposes. The required initial net working capital investment is $45,000, the margi..
|
|
What is the amount to use the annual sales figure
: Winnebagel Corp. currently sells 25,000 motor homes per year at $63,000 each, and 9,500 luxury motor coaches per year at $100,000 each. The company wants to introduce a new portable camper to fill out its product line; What is the amount to use as th..
|
|
First determine the tax issue
: First determine the tax issue. Then research the issue and determine your conclusion. Finally, write up your results using the following format: Deducting Charitable Contributions. Your clients, Sonny and his wife Honey, believe in worshiping Ta-Ra,..
|
|
Determine the current value of your total investment
: Determine the current value of your total investment. Do not make any changes to your investment at this time. Calculate your total based on the number of shares and the new price per share, for each company.
|
|
What is the amount of the interest for third year of loan
: You are borrowing $6,000 today. The loan is an amortized 6-year loan with an APR of 8 percent. The loan requires that $1,000 of the principal amount be repaid each year. Payments are to be made annually. What is the amount of the interest for the thi..
|
|
Make financial sense-what is the break-even cost
: Compact fluorescent lamps (CFLs) have become more popular in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent lightbulb costs $0.44 and lasts for 1,000 hours. However, electricity costs actually vary quite a bit ..
|
|
How much did you initially deposit
: You make a deposit of $1,000 in an account that pays interest at a rate of 12% compounded quarterly. In two years, the balance will be? You opened a bank account that pays 8% interest compounded annually and you made a deposit. You made no more depos..
|