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Liquidation, costs of offering, partnership formation, taxable income

See attached file for proper format. 1. What happens to a subsidiary's tax attributes (e.g., net operating loss, E & P, capital loss carryover) upon a 332 liquidation? 2. The stock of Magenta Corporation is owned by Fuchsia Corporation (90%) and Marta (10%). Magenta is liquidated on September 2, 2011, pursuant to a plan of

Kona Rural Electric Accounting for Customer Deposits

80. The Kona Rural Electric Co-op (KREC) is an accrual basis public entity. All new customers are required to pay a deposit equal to 3 times the customer's monthly bill or $100, whichever is greater. The purpose of the deposit is to ensure that timely payment is made on accounts. The funds so received are not segregated from oth

Tax Research advising shareholders of implications

73. Omega Investments, Inc., was formed in 1991 by 10 unrelated individual investors. It operates a chain of electronic stores. The corporation suffered losses in its early years but has become profitable in recent years. The corporation elected S corporation status in 1991. Over the years, the original shareholders have gift

Tax Consequences of Issues

In each of the following problems, identify the tax issue(s) posed by the facts presented. Determine the possible tax consequences of each issue that you identify. 57. Lydia owns 75% of Flower Farms, a partnership. She also owns land that she leases to Flower Farms for $6,000 per month. 58. Micheal buys a piece of property

Terms of property or alimony payment to be tax free to Elizabeth

Kevin and Elizabeth are negotiating a divorce settlement. Kevin is in the 35 percent marginal tax bracket and Elizabeth is in the 15 percent marginal tax bracket. Kevin has offered to pay Elizabeth $15,000 each year for 10 years; payments would cease if Elizabeth dies before the end of the 10- year period. Elizabeth is willi

Dependency Tax Exemption Qualifications

We are going to look at dependency exemptions in the US. What requirements must be met to qualify for the dependency exemption? Make sure you discuss the qualifying child and qualifying relative requirements.

Explain the tax treatment of an employee for one or more of the following: Payment of wages FICA and FUTA Payment of health care or other benefits Free use of the company car Payment of travel expenses Other employee business expenses that are not reimbursed.

Let's focus more on the tax aspects of being an employee. Explain the tax treatment of an employee for one or more of the following: Payment of wages FICA and FUTA Payment of health care or other benefits Free use of the company car Payment of travel expenses Other employee business expenses that are not reimbursed.

Plagiarism and Academic Integrity

At the age of 19, Kavya Viswanathan had made achievements beyond the reach of many. She was a sophomore in Harvard and her first novel, "How Opal Mehta Got Kissed, Got Wild and Got a Life," was part of a highly publicized two-book deal with publisher Little, Brown and Company. Viswanathanâ??s future seemed bright, until an arti

Determining Balances Using the Accounting Equation

At the beginning of the year, Pear Corporation had total assets of $550,000 and total liabilities of $210,000. Answer the following questions viewing each situation as being independent of the others. (1) If total assets increased $200,000 during the year, and total liabilities decreased $75,000, what is the amount of owner's

Evaluating Performance Using Metrics

Evaluating Performance Using Metrics Using the data from the Anthony's Orchards website, write a 1- to 2-page paper identifying the profit centers, cost centers, and investment centers of the company. What are the indicators that each responsible party uses to evaluate performance? How can a manager evaluate each unit's perform


Norman is considering the purchase of some investment land from his neighbor, Robin, a high school math teacher. Robin purchased the land 10 years ago for $6,000. They have agreed on the overall terms of payment of $800 every month for the next three years for a total of $28,800. They have not agreed on how much of each payment

different forms of business organization

Shawn Bates was working to establish a business enterprise with four of his wealthy friends. Each of the five individuals would receive a 20 percent ownership interest in the company. A primary goal of establishing the enterprise was to minimize the amount of income taxes paid. Assume that the five investors are taxed at the

Generally accepted accounting principles: Define accounts

Listed below are accounts that are found in financial statements. For each of the accounts, using any and all sources available to you, provide the following infor mation. a. Provide the official definition under Generally accepted accounting principles. b. Identify the type of account (asset, liability, equity, revenue, ex

Accounting codification FASB in 2011: Intangibles and impairment

I. What was the last official pronouncement of the Financial Accounting Standards Board in the year 2011? Briefly describe the pronouncement in your own words. II. You are conducting an audit for ABC Corporation for the year ended December 31, 2011. Several items come to your attention: a. On January 15, 2012, while you a

Problems Regarding Comprehensive Income

Please help with the following problems: Provide the definition of of comprehensive income. Explain the difference between the end of year treatment of net income and other comprehensive income When was comprehensive income was issued ? How should the company present other comprehensive income and accumulated other comp

Mr. A has three rental properties which he rents, but hires

Mr. A has three rental properties which he rents, but hires a service to maintain the properties. Mr A also have a full time job as a Sales Rep with ABC Manufacturing. Mr A's rental properties generate $3,000 each month. The depreciation on the properties totals $2,000 each month plus his monthly maintenance fees of $1,500

Passive Income

A disadvantage in regards to taxes when it comes to earned income is the limited amount of deductions available. When compared to passive income, deductions on earned income are less plentiful. Explain what is meant by "passive income deductions on earned income are less plentiful". http://www.taxbraix.com/tax-articles/dif

Provide five examples of variable costs for a fitness center in 400word doc

BYP19-7 Many of you will some day own your own business. One rapidly growing opportunity is no-frills workout centers. Such centers attract customers who want to take advantage of state-of-the-art fitness equipment but do not need the other amenities of full-service health clubs. One way to own your own fitness business is to bu

Use of ABC (Activity Based Costing) for Apple, Inc.

Identify a product or service that Apple could use ABC and identify at least three activities for ABC and the appropriate cost drivers for those activities. Estimate the application rates for each cost driver. Summarize the information in a table and discuss how the information can be beneficial. The following items will be a

Basis in corporation stock, transfers, tax on distributions

Question 1 Jane, Jon, and Clyde incorporate their respective businesses and form Starling Corporation. On March 1 of the current year, Jane exchanges her property (basis of $50,000 and value of $150,000) for 150 shares in Starling Corporation. On April 15, Jon exchanges his property (basis of $70,000 and value of $500,000) for

Pension Plan Accounting: Jarvis Corporation

Can you help me with this assignment? The accountant for Jarvis Corporation has developed the following information for the company's defined-benefit pension plan for 2008. * Service cost $500,000 * Actual return on plan assets 260,000 *

Sauder Company: Accounting Changes Regarding Depreciation Method

On January 1, 2003, Sauder Company purchased a building and machinery that have the following useful lives, salvage value, and costs. *Building, 25-year estimated useful life, $400,000 cost, $400,000 salvage value *Machinery, 10-year estimated useful life, $500,000 cost, no salvage value. The building has been depreciated und