...Re: Tax Issues Relevant Facts John Smith, Esq. worked on a case for over two years. The jury awarded his client $2,000,000 in damages, of which his fee was $300,000 plus recovery of expenses paid up front in the amount of $25,000. John is also thinking about buying the building that he currently leases his office space in. His current lease is $3,500 per month. John Smith’s business is a separate law practice established as an LLC. Jane Smith sells handcrafted jewelry which earned her $20,000 last year. Jane’s jewelry making equipment is five years old, cost $10,000 and is almost obsolete. Specific Issues 1. John Smith tax issues: a. How is the $300,000 treated for purposes of federal tax income? b. How is the $25,000 treated for purposes of federal tax income? c. How can John reduce the taxable amount of income for both (a) and (b) above? d. Is it more beneficial to continue leasing the business space or to buy the building? 2. Jane Smith tax issues: a. What are the different tax consequences between paying down the mortgage (debt) and assuming a new mortgage (debt) for federal income tax purposes? b. Can John and Jane Smith utilize a 1031 tax exchange to buy a more expensive house using additional money from John's case? c. Does Jane have a business or hobby for federal income tax purposes? Why is this distinction important? d. Would Jane (and John) realize better tax benefits if she had a separate business for her jewelry-making activities? e. What...
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...Copyright © 2013 by McGraw-Hill Education. All rights reserved. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. ISBN: 978-0-07-180360-1 MHID: 0-07-180360-2 The material in this eBook also appears in the print version of this title: ISBN: 978-0-07-180359-5, MHID: 0-07180359-9. E-book conversion by Codemantra Version 1.0 All trademarks are trademarks of their respective owners. Rather than put a trademark symbol after every occurrence of a trademarked name, we use names in an editorial fashion only, and to the benefit of the trademark owner, with no intention of infringement of the trademark. Where such designations appear in this book, they have been printed with initial caps. McGraw-Hill Education eBooks are available at special quantity discounts to use as premiums and sales promotions or for use in corporate training programs. To contact a representative please visit the Contact Us page at www.mhprofessional.com. Trademarks: McGraw-Hill Education, the McGraw-Hill Education logo, 5 Steps to a 5 and related trade dress are trademarks or registered trademarks of McGraw-Hill Education and/or its affiliates in the United States and other countries and may not be used without written permission. All other trademarks are the property...
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...Interface * Intra-LTE (Intra-MME/SGW) Handover Using the S1 Interface * Handover Measurements * Handover Optimization and Design Principles * Handover Parameters * Handover Evaluation Mechanisms * Handover Failures in LTE * Conclusion. References: 1. Han, J., & Wu, B. (2010, October). Handover in the 3GPP long term evolution (LTE) systems. In Mobile Congress (GMC), 2010 Global (pp. 1-6). IEEE. 2. Iñiguez Chavarría, J. B. (2014). LTE Handover performance evaluation based on power budget handover algorithm. 3. Rao, V. S., & Gajula, R. (2010). Interoperability in LTE. White Paper Continuous Computing, published in webbuyersguide. com. 4. Cox, C. (2012). An introduction to LTE: LTE, LTE-advanced, SAE and 4G mobile communications. John Wiley & Sons. 5. Kreher, R., & Gaenger, K. (2010). LTE signaling: troubleshooting and optimization. John Wiley & Sons. 6. Network, E. U. T. R. A. (2011). S1 Application Protocol (S1AP)(Release 10). *More...
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...computer teacher at Garfield High School in downtown Los Angeles, California. To his surprise, the school lacked the computers he needed for the class, so he took an alternative position as a math teacher. In that first year of teaching, Mr. Escalante was confronted with many obstacles. The school was in the verge of loosing its operative certification; many students scored poorly in their academics, had problems with drugs or were involved in gang violence. As a new teacher, he constantly felt frustrated, with a sense of guilt for not inspiring his class to love math the way he did. Subsequently, and against all the odds, Mr. Escalante made a great contribution in the lives of students, and transformed the face of the College Board’s Advanced Placement Program® (AP®). Most...
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...OMNITEL PLAN 1) OPERATING MARKET: Market sector: Telecommunication After the collapse of Soviet Union in 1991 the first Lithuanian telecommunication company was organized by two Lithuanian entrepreneurs -Doctor of Economics J. P. Kazickas and Victor Gediminas Gruodis. Today JSC “OMNITEL” is recognized as the leading mobile communication service provider in the Baltic countries. From 2004 the company was joined to international telecommunication and network service provider SC “TeliaSonera” which is considered to be listed in Europe’s 5th largest telecom operators. According to the Communications Regulatory Authority (CRA) in 2010 in the latest quarterly report Omnitel in revenue covered: * 35.4% of the Lithuanian mobile market * 39.7% of active subscribers * 56.7% of Lithuanian mobile broadband PC market Omnitel Businesses: GSM mobile services, mobile Internet access and integrated data transmission solutions. JSC „Omnitel“ activities includes data transfering, GPRS ( General Packet Radio Service), web services, mobile and radio service, voice transfering. 2) COMPANIES ORGANIZATIONAL STRUCTURE: (gavau informacija is draugu, kurie ruose diploma apie omnitel) Company constantly improves and develops the organizational structure towards horizontal one, thus ensuring the optimum flow of information from top management to the lowest level of management. However, the detailes of organizational structure of the company are not publicized. ( neisitikinus...
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...Group C1 Case Study D: M-Commerce Definition: Mobile Commerce is any transaction, involving the transfer of ownership or rights to use goods and services, which is initiated and/or completed by using mobile access to computer-mediated networks with the help of an electronic device Question 1: What is the “8-second-rule” of the internet and why is it important to the m-commerce technology? 8 second rule: a webpage has to be loaded completely in less than 8 seconds in order not to bother internet users who feel frustration while they are waiting Application to the m-commerce technology: since it is a new technology and we will see that users have many concerns about it, phone service providers need to offer fast connection Especially since the current technology isn’t stable and reliable enough, especially in big western cities where it is most important Question 2: Why might it be useful to m-commerce providers to have records of their users’ purchase histories? Through the use of cookies during online navigation, users are “customizing” their use of the internet which allows them to have quicker and easier navigation (automatically fulfilled) This also allows providers to get a lot of information about customers Three main purposes of having records: * Customer Relationship Management * Targeted advertising * Geographic localization Question 3: What is the biggest concern most cell phone users have about using m-commerce services? What are some other...
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...require remedial work. Advanced Placement Test (AP) High school students, who are high achievers, have an option to take AP classes. The College Board requires that the AP class be taken by an accredited school and the courses have to be approved and audited by the College Board. Only the approved sites are able to use the "AP" designator on the transcript "Authorization to use the "AP" designation for your course. http://www.collegeboard.com/html/apcourseaudit/faq.html However, a home school educator can create an account on the AP Course Audit homepage at the College Board website. Once the account is created, submit the course material and course syllabus to be evaluated and pre-approved. AP is graded on a simple 5-point scale. Each university has their own guideline of which AP classes to accept and what grade level is required. Before taking the AP course, check with the Universities for their rules. The point-scale for the AP exam ranges from 1 to 5. 5 - Exceptionally qualified to receive college credit 4 - Qualified to receive college credit 3 - Qualified to receive college credit, although a 3 is not accepted by most colleges. 2 - Could possibly be qualified to receive college credit (keep in mind that almost no college will accept a score of 2) 1 - Not recommended to receive college credit There are 37 AP courses offered each May around the country. Remember that homeschoolers can only label courses as “Advanced Placement” on their high...
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...business behaviors impacted by tax changes in Malaysia Justification There are many factors influence the changes of accounting importance where the role of accounting evolves along with the business changes affected by these factors. One of the factors that affect role of accounting in business field is tax. In Malaysia, Tax is generally divided into 2 types which are direct and indirect tax. Direct tax can be defined as tax which is imposed straight to the taxpayer. In short, the payment of tax is between taxpayer towards government. Examples of direct tax are income tax from employee salary, corporation tax, property tax, and etc. Meanwhile, indirect tax is a type of charge that can be transferred to the other person. A good example of indirect tax is restaurant that collect tax charge of the food’s sold from the customer (sales tax). Other examples of indirect tax are custom duty, central excise duty, and service tax). In brief, the history of Malaysia tax was started with more dependency towards indirect tax where establishment of direct tax has only started to take effect from 1 January 1948. This establishment has changed the trend of Malaysia tax which depends more and more on direct tax until today. In 2009 itself, government revenue has grown to 48.6% from direct tax. The urgency of understanding changes in accounting role due to tax, become important because of several reasons. Firstly, as the globalization of the economy develops further, tax becomes an option that can...
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...the unemployment rate floated around 6.8% and was lower than the OECD average of 8.6% and was ranked 12th of 27 OECD countries with standardized unemployment rates. New Zealand is a leader in economic freedom due to its diversified and modern economy, with high levels of prosperity and institutional strengths that include strong protection of property rights and an efficient legal structure. In spite of the recent stress on the economy, New Zealand remained relatively unharmed, with public debt, increased by crisis spending and now above 20% of GDP, remains moderate compared to other advanced countries. Trade is moderately open but do contain some non-tariff barriers like import restrictions, services market access barriers and import fees. As far as fiscal freedom, New Zealand has a fairly high income tax and a moderate corporate tax. The top income tax rate is 38% with a flat corporate tax rate of 30%. The 2010 Budget Act details reforms starting October 1, 2010...
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...the institute of cost accountants of india(ICAI) (A Statutory body under an act of parliament) SYLLABUS 2012 STRUCTURE & contents Evaluation Synthesis ANALYSIS ANALYSIS APPLICATION APPLICATION COMPREHENSION COMPREHENSION COMPREHENSION KNOWLEDGE KNOWLEDGE KNOWLEDGE LEVEL A LEVEL B LEVEL C FOUNDATION COURSE - Syllabus 2012 the institute of cost accountants of india(ICAI) (A Statutory body under an act of parliament) SYLLABUS 2012 STRUCTURE & contents The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1 FOUNDATION COURSE - Syllabus 2012 The Following table lists the learning objectives and the verbs that appear in the syllabus learning aims and examination question. Learning objectives Level A COMPREHENSION What you are expected to understand List Make a list of. State Express, fully or clearly , the details/ facts of. Define Give the exact meaning of. Communicate the key features of. Distinguish Highlight the differences between. Explain Make clear or intangible/state the meaning or purpose of. Identify Recognise, establish or select after consideration. Illustrate What you are expected to know Definition Describe KNOWLEDGE Verbs used Use an example to describe or explain something. The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) ...
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...corporation, the explanations to the deferred tax methods, procedures for accounting changes and corrections, and the reasoning for setting up the corporation as a subsidiary will be addressed in the following memo. Deferred Tax Method Financial reporting and tax reporting create temporary differences between the amounts reported for income taxes and on the financial statements because an accrual basis is used for financial reporting and a modified cash basis is used for tax reporting. Deferred taxes reported contain a temporary difference between the tax basis of a liability or asset and its reported amount in the financial statements that will result in taxable or deductible amounts reporting years. Deferred tax liabilities and assets are recognized on the balance sheet based on the difference between the financial statement values and the tax basis (Kieso, Weygandt, & Warfield, 2007). The balance sheet approach and the guidelines of the Financial Accounting Standards (FAS No. 109) have been followed to account for this timing issue. Deferred tax assets are recorded when there are greater expenses for financial reporting than tax reporting. At some point the tax amount paid to the Internal Revenue Service (IRS) will be higher than the tax on the financial statements. Deferred tax liabilities occur when items are treated as expenses for tax purposes and capital expenditures on the financial statement. Alternatively deferred tax assets arise if losses are carried forward and...
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...Macroeconomic Policy and U.S. Competitiveness The United States is on a glide path to fiscal disaster, with experts projecting that the federal government will take in far less money than it spends—indefinitely. Although in our experience business leaders have a general sense that this state of affairs is dangerous, they’re unclear on exactly how fiscal policy shapes the competitiveness of the nation and of their companies. The current policy is eroding competitiveness in several ways, and business conditions in the United States will deteriorate if there’s no change in direction. A better understanding of how fiscal policy and competitiveness are linked may make such a change more likely. How does fiscal policy affect competitiveness? To answer, we need a clear definition of “competitiveness”—which is, in our view, the extent to which a nation’s companies can succeed in the global marketplace while its people enjoy a high and rising standard of living. Companies compete on the basis of production costs for a certain amount of output. The only way to lower those costs while sustaining and raising workers’ standard of living is to increase productivity, or output per worker. Raising productivity requires improving human capital, increasing physical capital (equipment or software, for example), or using these forms of capital more efficiently. Let’s look at how the spending side of fiscal policy relates to these three drivers. Many public goods provided by the government contribute...
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...The Financial Business Plan of an Ideal Company Dianna Schrock Instructor: Jeff Bloom AIU Applied Business Mathematics December 13, 2015 1. Banking and loan arrangements Since this is a small business start-up with little financial requirement, we would opt to go for a microloan program since this will be easier to acquire and does not require too much collateral and will just require personal guarantee of the three of us, as the business owners. This will enable us acquire basic facilities for starting such as Machinery, furniture and fixtures, and working capital. Microloans will also facilitate flexibility on repayments as we plan to start repaying the loan after two years, monthly for approximately three years, since we expect the business to start generating profits within the first two years of operation. We would prefer to go for the Small Business Administration Loans since this will require us to pay within six years. To ensure accuracy and sufficiency of funds, we shall first establish all the assets that will need to be acquired before the start-up, obtain the average cost listing from possible vendors and compute the total cost requirements for these assets. We shall also calculate the total overheads that shall be incurred for the period that the Business will not be expected to generate profits and sum them up. The totals of these will hint us on the total cost requirement, which has already been estimated at $50,000; the amount that we shall...
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...India is World Bank’s shining star as it bucks the slowdown trend of emerging market economies By V.V.L.N. Sastry India is one of the few countries on which the World Bank has upgraded its forecast on 10 June 2015. India has benefited from both good policies and luck, as Narendra Modi’s government has taken advantage of cheap oil to phase out costly fuel subsidies and banked the proceeds; and its Central Bank has sought to establish a more credible inflation-fighting regime. The World Bank expects India to be the fastest-growing major economy in 2015, expanding by 7.5%, and to continue outpacing China in 2016 and 2017. As per World Bank, India is a shining star. Low oil prices have really benefited India. The World Bank has cut its forecasts for growth across emerging economies this year, warning that they face a double whammy from rising US interest rates from their record low of 0%-0.25%, and lower commodity prices. Growth in emerging economies is expected to be 4.4% in 2015, down from the 4.8% the World Bank was expecting in December. India is the only nation which is expected to grow by 7.5% while the world economy is expected to grow by 2.8% in 2015. Some of the largest downgrades are for oil-exporting countries, including Nigeria, Angola and Brazil, with South America’s largest economy expected to contract by 1.3% this year. The Bric countries that India normally competes with are struggling somewhat, which allows India to stand out a bit more. The drop in oil...
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...hyperinflation and advanced reforms to liberalise the economy, but public-debt indicators deteriorated amid low economic growth. The current government, under the president, Luiz Inacio Lula da Silva, has been successful in consolidating macroeconomic stability, while stepping up social spending. However, the political environment is obstructing the implementation of deeper reforms needed to accelerate growth. Political structure: The president executes policy approved by the 513-seat Chamber of Deputies (the lower house) and the 81-seat Senate (the upper house). Constitutional review is by an independent judiciary. Although the president can resort to temporary decrees to push through legislation, the 1988 constitution gives Congress ample capacity to frustrate the executive. A total of 21 political parties are represented in the lower house and party discipline has traditionally been weak. Policy issues: The Lula government has stuck to fiscal and monetary conservatism and improved the public debt ratios, while stepping up poverty-alleviation programmes. But fiscal problems persist, preventing a steeper decline in interest rates. Public debt remains high at around 41% of GDP and, despite improvements, social security expenditure still appears to be on an unsustainable path. The success of Lula’s plan to raise annual average real GDP growth to 5% (mainly through higher infrastructure investment) will depend on progress in reforms, including streamlining the complex tax system, strengthening...
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