How much of the income will be attributed

Reference no: EM131139188

Accounting Case Problem-

I am requesting the following case problems done following the steps outlined.

It needs to be written out with steps 1-5 for accounting research:

1. Identify the issue/s
2. Collect the Evidence
3. Analyze and evaluate alternatives
4. Develop Conclusion
5. Communicate results and document

Case Problem 1:

Taxation

Benson, a singer, owns 100% of the outstanding capital stock of Lund Corporation. Lund contracted with Benson specifying that Benson was to perform personal services for Magda Productions, Inc., in consideration of which Benson was to receive $50,000 year from Lund. Lund contracted with Magda, specifying that Benson was to perform personal services for Magda, in consideration of which Magda was to pay Lund $1 million a year.

REQUIRED

Personal holding company income will be attributed to which of the above entities?

How much of the income will be attributed?

Discuss your answer with proper citations to the tax code.

Case Problem 2

Compilation and Review

Clark, CPA, compiled and properly reported on the financial statements of Green Co., a non issuer, for the year ended March 31, Year1. Theses financial statements omitted substantially all disclosures required by GAAP. Green asked Clark to compile the statements for the year ended March 31, Year 2, and to include all GAAP disclosures for Year 2 statements only, but otherwise present both years' financial in comparative form.

What is Clark's responsibility concerning the proposed engagement?

Discuss your answer with proper citations to the tax code.

Reference no: EM131139188

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