Reference no: EM131063581
Question 1
You are preparing a tax return and note that your client received several 1099-Bs, Proceeds from Broker and Barter Exchange Transactions. Unfortunately, the brokerage statements that your client provided do not identify the cost basis for the stock that was sold. Your client received proceeds of $875,000 from the sale of 40 different stocks that were purchased over 20 years, received as gifts or inherited. What will you do to prepare an accurate tax return? What questions will you ask your client?
Assume that your client says that the cost basis, to the best of her knowledge, is equal to the proceeds of the sale. How will that impact how you prepare Schedule D?
What ethical issues do you, as a tax preparer, have to deal with?
Question 2
Read the following scenario and use the information to help you answer the discussion questions that follow:
Scenario:
You work for a large company in which the CEO is not entirely involved in the day-to-day workings of the financial department. As the CEO is walking through your department, he sees you working on a Statement of Cash Flows. Intrigued, he asks "what's that you're working on?"
Now, you are well aware of the importance and use of the SOCF within the business world. You are presented with the unique opportunity in explaining this to your boss. What key points would you address with the CEO? What makes those points so important? Explain.
Question 3
How do sensitivity analysis, scenario analysis, decision tree analysis, and computer simulations assist in making the financial investment decisions? How do these relate to our primary financial investment decision tool of NPV?
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A responsibility accounting system offers
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Covered call by buying one share of a stock
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Shareholders as the annual dividend
: Michael's, Inc. just paid $2.45 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 5.30 percent. If you require a rate of return of 9.5 percent, how much are you willing to pa..
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Begin paying annual dividends
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What ethical issues do you as a tax preparer have to deal
: You are preparing a tax return and note that your client received several 1099-Bs, Proceeds from Broker and Barter Exchange Transactions. What ethical issues do you, as a tax preparer, have to deal with?
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What is the break even corporate tax rate
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Certain window components from duwee
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Absolute advantage in the production of barley
: Andrew's opportunity cost of producing 1 bushel of barley isbushels of alfalfa whereas Beth's opportunity cost of producing 1 bushel of barley isbushels of alfalfa. Because Andrew has aopportunity cost of producing barley than Beth,has a comparati..
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Calculate the projected cash flows
: Calculate the projected cash flows. If the company requires a rate of return of at least 12% should it accept this project? "Assume the following scenario: SG&A increases by 20% in each year,
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