Tax Accounting – Exam Three
After working in accounting for fifteen years, you and two friends have decided, you would really like to start your own firm. Some of the initial consultations you have had in your meetings have brought up a number of issues. Please answer the following issues being brought up.
You are trying to decide what kind of entity you want to use for your business. You have the option of using the C-Corporation, S-Corporations and the Partnership. Which entity would you argue to use and provide at least three reasons in support of this choice and one potential problem you might have for this choice? (10pts)
After discussion, the decision is to choose to operate as a C-Corporation. As a part of this organization, you all decide you want to set up an education reimbursement program. You have decided to categorize this under two groups: 1) continuing education and 2) reimbursement for tuition in pursuit towards a master’s degree. Provide discussion of the difference between how each will be taxed to the corporation and the employees under each case. (10Pts)
After several years, your firm is rather successful and, in an effort, to expand, the company is deciding to expand their benefits package. One of the changes being discussed is offering health care benefits. Discuss how health care benefits are taxed to the owners of the firm under the case the firm is taxed as a partnership vs a C-Corporation. (10pts)
How are health benefits treated for owners of S-Corporations under two situations. 1) If the owner is a 1% owner. 2) If the owner is a 25% owner. (10pts)
You have a client, and they formed a corporation with 5 of their friends. All of the owners (all six of you) were required to put in $50,000 or assets valued at the same into the company, but only 1 of the owners is going to work full time for the company. Under which tax code does this transaction apply and what are the tax effects to the corporation and to the shareholders, who all contribute (for this transaction specifically). (10Pts)
In 2019, US Sys Corporation received $250,000 in death benefits after its CEO (a key employee) died (it included this amount in book income). For book purposes, US Sys also expensed life insurance premiums for other key employees in the amount of $20,000. In addition, for book purposes, it
|expensed $10,000 of business meals expenditures. What is the total book–tax difference associated with|
|these items? Is it favorable or unfavorable? What amount of the book–tax difference is temporary and|
what amount is permanent?
What is the difference between the aggregate and entity theories of partnership taxation? Provide two examples of how partnership tax rules reflect the aggregate theory and two examples of how they reflect the entity theor
What are five common book to tax differences in determining tax income from book income? (10Pts)
During 2020, Sienar Systems, Inc purchased Correalian Drives, Inc. (one of its suppliers) using the assets method. As a part of this business, it was determined the company purchased 1,200,000 of Goodwill.
How much is the book to tax difference with this purchase in 2020 and is it temporary or permanent? (5Pts)
In 2022, it was determined the goodwill was impaired to the tune of about $200,000. What is the book effect of the impairment in 2022? (5Pts)
What is the book to tax difference of the impairment in question 6.b. ass reported on the form 1120? Is it temporary or permanent? (5Pts)
Order any type of Service We Provide
We are the best assignment service that can satisfy student’s demands in different scientific fields. We perform tasks of any kind. Our specialists provide diverse custom assignment writing services to students from all over the world every day. You can contact us for assistance with:
The list is far from complete!
Representatives of our student assignment service are connoisseurs of the peculiarities of presentation in regards to academics. Your college assignment will never turn out an untoward surprise! Whether you need research for high school, an undergraduate program, or a Master’s or Doctoral degree, you will get exactly what you are looking for to sound smart and well-informed.
If you are pressed for time, request our experts!
We are your academic saver. It is a perfect solution for people who need academic help but has no professionals nearby to provide it. Just redirect your home tasks to us and forget about any educational issues. With us, you will get 100% plagiarism-free content delivered on time by an experienced specialist in a particular field.
Main Advantages of Collaboration with Us
When you order professional assignments here, you will get:
Original custom papers. We value your academic reputation. Just as well, we value the years of thorough work on our reputation for reliability and never compromise the originality of delivered papers. We will never endanger both. Every custom assignment is written from zero – the only possible first stage of work on the order is research. We apply the latest plagiary checking tools on the final stage, so plagiarism has no chance to emerge in your college assignment writing.
Control over the order completion. To make the process of collaboration comfortable and efficient, we offer our clients to choose the writer themselves taking into account all the requirements and the budget. For you to save nerves, having entrusted your fateful task to some qualified “stranger”, we enable communication with the assigned writer in the process of order completion.
Affordable assistance. We are eager to contribute to the academic achievements of students in need of help with college assignments. We are eager to help you start investing in your career growth today. That is why our service is so affordable. We don’t charge to pay for the latest marketing tricks or advertisements – we choose the best experts in the labor market who write great custom papers in any area, level of complexity, and time frame. Our client’s grateful feedback is a top advertising trick.
On-time delivery. The quality of a paper is only valued when it is delivered within the determined time frame – you will get your custom assignment writing service in time and have a couple of days to revise it and ask for changes in case they are needed. And you will still have time to learn the material.
Protection. We value your trust and take all measures needed to keep your private and banking details safe. We offer only well-tested payment methods. Due to the system of encryption and protected servers, no third party can have access to your data.
Custom support 24/7. We do our best to make the process of collaboration comfortable for the customer. Our “write my assignment” help is always here for you to provide a solution to your problems, give you a prompt answer to any question, and offer clarification as to any issue related to the services. Feel free to contact us anytime!
If you feel that your dissatisfaction with student life is growing every day and you just feel exhausted, don’t hesitate to change the situation for the better today. Order your first assignment from reliable custom assignment services today to evaluate the advantages.
Having seen the difference once, you won’t want to go back to your previous lifestyle. You deserve to find fulfilment in other spheres of your life, have hobbies, spend time with close people but continue making progress. It is possible when you have a professional helper. Don’t put off your life for someday after graduation!
|Asset||Basis||Fair Market Value|
What are the tax effect to Kevin, Robb and Gerald for transferring the profit and losses interest? (10Pts)
The partnership has the following forms of debt:
Recourse: $150,000 (The recourse debt was secured 100% by James)
Qualified Nonrecourse Mortgage: $600,000
Kim had the following stats:
James and Paul are not interested in acquiring more of the firm, but Alice, who is a manager in the company is interested in purchasing Kim’s interest. She is willing to purchase it for $750,000 (using a loan from her 401k and the bank to finance it).
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more