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Your client Crimson Corp. (CC) is being audited by the Department of Revenue for the State of New York for the calendar year 2010. CC had been audited by the Internal Revenue Service (IRS) for 2010 and agreed with CC's tax position that the sale of the corporation's stock as described later, was primarily treated as the sale of goodwill. The issue in question is limited to a single question. CC is a Massachusetts (MA) corporation and has made an S election several years ago. The owner of the S corporation shares is a MA resident. It has been in business since 1998. It had operated exclusively in MA from 1998 until 2004 when it began to do business in New York. It has had minimal contacts in NY, hiring a few employees in NY but the majority of the business has been solicited through its MA based sales force. In 2010, approximately 45% of its operating income was apportioned to NY with the remainder allocated to MA. In 2010, the company was sold to NPD, a publicly traded company for $100 million. The proceeds from the sale of the company were allocated entirely to MA. Its normal operating profit was allocated as previously described. NYS is now asserting that 45% of the profit from the sale of the stock must be allocated to NY. How would you respond, on behalf of your client? Are there any arguments that you could make to rebut the NY's assertions?
Assuming she invests the money her grandmother gives her in a mutual fund that is expected to earn 10%, how much money must she get from Granny if she hopes to meet her early retirement goal?
For each of the following items, give an example of a business transaction that has the described effect on the accounting equation:
What financial information are such clubs likely to collect and maintain? Assuming that the club keeps manual accounting records; would you consider such systems accounting information systems? Why or why not?
Following are selected accounts for Green Corporation and Vega Company as of December 31, 2010. Several of Green's accounts have been omitted. Compute the book value of Vega at January 1, 2006
On January 1, Year 1, Jayco purchased a machine for $6,000. It had an estimated salvage value of $1,200 and a life of six years. The straight-line method of depreciation was used. At, midyear in Year 4, Jayco sold the machine for $4,500 cash.
William and Frank are partners whose capital balances are $400,000 and $300,000 and who share profits 3:2. Due to a shortage of cash, William and Frank agree to admit Sammy to the firm.
Prepare in general journal form the entry necessary to correct the books for the transaction in part 1 of this problem, assuming that the books have not been closed for the current year. Compute the net income to be reported each year 2007 through..
There're 3 major requirements of Code Section 351: (1) the transfer must consist of property, (2) the transfer must be solely in exchange for stock and (3) the transferors must be in control immediately after the exchange.
The income from the business before the cost recovery deduction and the 179 deduction was 810k. She takes additional first year depreciation. Determine the cost recovery deduction with respect to the asset for 2013.
Write a 1-2 page research summary on the document below authored by Sunder. Focus your paper on Sunder's five key elements of consensus for common accounting standards for multinationals.
Explain disclosure requirements for nonprofit organizations, such as the tax-exempt determination letters required by Congress and the IRS. Discuss the reasons for these disclosure requirements and the sentiments of the public and government abou..
The concept of operating leverage Signifies to which of the following?
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