Reference no: EM13834277
Tax Research
A and C is a famous country-and-western singer. As an investment, A and Cstarted a chain of barbecue restaurants called ACs Terrific Ribs. AC’s friends and associates invested $600,000 in this venture. The restaurant chain failed, and the investors lost all their money. Because of his visibility and status in the entertainment community, Flake felt that he personally had to make good on the losses suffered by the investors, to protect his singing and business reputation. Consequently, he personally paid $600,000 to reimburse the investors for their losses.
Use the following resources to prepare a tax research memorandum and client letter:
I.R.C. § 162
Harold Jenkins, 47 TCM 238 (1983)
Lohrke v. Comm., 48 T.C. 679
In Harold Jenkins, 47 TCM 238 (1983), the Tax Court ruled that payments made to investors to reimburse them for their losses are deductible under §162 as ordinary and necessary business expenses of petitioner's business as a country music performer. The Court concluded on the basis of Lohrke v. Comm., 48 T.C. 679, that the negative impact of a potential lawsuit from the investors on the petitioner's career would justify the reimbursements as an expense of maintaining the integrity and reputation of that career.
Calculate the total family net worth country
: In 2000, in Country A, the average family net worth was $410,000, and there was about 6.1 x 10^7 families. Calculate the total family net worth Country A in 2000. Country A's total family net worth is what in dollars?
|
Price discrimination allows a firm to charge different price
: The law of diminishing returns says that at some point, as the firm's output increases, marginal product begins to fall and can eventually became negative. Why does this happen? Price discrimination allows a firm to charge different price to differen..
|
Identify the types of epidemiology studies
: Identify the types of epidemiology studies that are used to prove that a given substance resulted in changes in human health.
|
Relationship between interest rate and length of annuity
: Let’s explore retirement planning analysis by calculating the data and sketching a graph that shows the relationship between interest rate and length of the annuity, i.e. the period that monthly withdrawals are made from the retirement account.
|
Prepare a tax research memorandum and client letter
: A and C is a famous country-and-western singer. As an investment, A and C started a chain of barbecue restaurants called ACs Terrific Ribs. AC’s friends and associates invested $600,000 in this venture. Flake felt that he personally had to make good..
|
What is overall profit-profit-maximizing price and quantity
: A medical device company has a monopoly on a certain class of cardiac implants. Demand for the implants is given by P=28000-5Q and marginal revenue is given by MR=28000-10Q. The total fixed costs for the implants division is 50000 and the marginal co..
|
Price controls-What would be the equilibrium price
: Suppose demand is still described by P=5.10-0.80Q and supply is described by P=1.90+0.20Q. If there are no price controls, what would be the equilibrium price?
|
The sale price of the jacket
: the sale price of the jacket
|