Problem regarding the embezzlement activity

Assignment Help Project Management

Reference no: EM13991316

Don was a senior vice president of a bank until its officials found he had embezzled more than $1,000,000. Don had set up fictitious checking accounts and deposited the funds into the accounts. He then created fictitious loans to himself. The embezzled money was used for personal purposes and to keep the fictitious loan pay- ments current. Thus, he created fictitious loans to make payments on prior fictitious loans. Don worked hard to keep the loans current so he would not be detected. Because of a tax audit, he is seeking your advice. If his embezzlement activity is a trade or business, he claims he should be able to deduct as an ordinary and necessary expense the payments on the loans to keep his actions secret. What advice would you give Don concerning his business and deductions? Explain.

Reference no: EM13991316

Questions Cloud

Treat the expenditures related to the duplex : How should Hamid treat the expenditures related to the duplex? Explain.

Compare and contrast the role of management : Compare and contrast the role of management in the 20th century organization and the role of management in the 21st century. How has the change in the purpose of businesses (i.e. manufacturing vs. service) and business environment, worker attitudes, ..

How is the mortality rate of malaria and its prognosis : How is the mortality rate of malaria and its prognosis?

Discuss why process improvement methodology : Discuss why process improvement methodology is important for all managers to be aware of and utilize? Provide examples of how this directly impacts healthcare agencies.

Problem regarding the embezzlement activity : If his embezzlement activity is a trade or business, he claims he should be able to deduct as an ordinary and necessary expense the payments on the loans to keep his actions secret. What advice would you give Don concerning his business and deduct..

Explain your profiling procedure : Assume that you are the marketing manager for a cosmetics company that has just developed a new line of male cosmetics. construct a brief profile of three market segments that you suspect might be interested in this new product line. Explain your pr..

What is definition of glucogenesis : What is definition of glucogenesis?show in a diagram pathway

Trade or business of renting real estate : The only cost to Max in relation to the lease is an annual legal fee for renewing the lease. Is Max engaged in the trade or business of renting real estate? How would you classify his deduction for the attorney's fee?

One cell of the leopard frog : One cell of the leopard frog (Rana pipiens) has 16.8 billion (16.8 X 109) bp of DNA.(a) If each nucleosome in this cell has a typical amount of "core DNA", and linker DNA that averages 40 bp, how many nucleosomes are there in a leopard frog cell?

User Account

All Pages