Prepare a client memo that recommends the adoption

Assignment Help Accounting Basics
Reference no: EM132561761

Question - Able Corporation is a closely held company engaged in the manufacture and retail sales of automotive parts. Able maintains a qualified pension plan for its employees but has not offered nontaxable fringe benefits.

You are a tax consultant for the company who has been asked to prepare suggestions for the adoption of an employee fringe benefit plan. Your discussions with the client's chief financial officer reveal the following:

Employees currently pay their own premiums for medical and health insurance.

No group term life insurance is provided.

The company owns a vacant building that could easily be converted to a parking garage.

Many of the employees purchase automobile parts from the company's retail outlets and pay retail price.

The president of the corporation would like to provide a dependent care assistance program under Sec. 129 for its employees.

Required - Prepare a client memo that recommends the adoption of an employee fringe benefit program. Your recommendations should discuss the pros and cons of different types of nontaxable fringe benefits.

Reference no: EM132561761

Questions Cloud

How would the extraction of carbohydrates : How would the extraction of carbohydrates from malted barley be affected if it was steeped at 23.0°C instead of 74.0°C?
What makes the result of the two methods differ : When does variable costing and absorption costing give similar result? What makes the result of the two methods differ? Give a short explanation
Banding pattern for a cross between parents : Table 2 below shows the banding pattern for a cross between parents P1 and P2 producing the 6 progeny I1-6.
How to prepare a production report for the department : BMG Inc. uses the weighted-average method, How to Prepare a production report for the department using the weighted-average method.
Prepare a client memo that recommends the adoption : No group term life insurance is provided. Prepare a client memo that recommends the adoption of an employee fringe benefit program
Solve the variance overheads efficiency and expense variance : Solve the Variance Overheads Efficiency and Expense Variances, Direct Materials Usage and Price Variances,Direct Labour Efficiency and Rate Variances
Discuss some potential benefits of species interbreeding : Discuss some potential benefits of species interbreeding
Solve net present value of new manufacturing plant : Calculate the net present value of the new manufacturing plant. Company consultants, The manufacturing plant would be useable for 10 years.
Assessing data that fell into two phenotypic classes : A geneticist, in assessing data that fell into two phenotypic classes, observed values of 270:130.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd