...1. Three Types of Income (on Final) a. Active (earned) income b. Passive income - income derived from a passive activity such as working interest in oil and gas, often associated with limited partnerships i. Can only deduct passive losses to the extent you have passive income c. Portfolio income (interest, dividend, annuities, sales of stocks and bonds, royalties not derived from an ordinary course of a trader business) 2. In –class quiz d. Owned a apartment complex ii. What is gross rental income 1. Tenant improvements in lieu of rent 2. Tenant improvement are not in lieu of rent iii. Two troublesome tenants, one comes and tell the landlord that they can’t pay the rent. Gives an interest bearing 90 day note in lieu of the rent. This note is treated as property and should be valued at FMV (fair market value) iv. Tenant hasn’t been in the apartment the entire month of December and has not paid rent. Paid late, landlord received in January 3. Include the rent in previous year’s taxable income v. Own a ten-flat in the city. Landlord lives in one of the ten, rent the other nine out. What is the net rental income? What about the deductions 4. What fractions of the building can you depreciate? 90% vi. Had inside information down in Springfield that a third airport was going to be built in the Chicagoland area. With this inside the...
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...disadvantages of incorporating a business is that the owners then become subject to liabilities in the event the firm goes bankrupt. B) Sole proprietorships are subject to more regulations than corporations. C) In any type of partnership, every partner has the same rights, privileges, and liability exposure as every other partner. D) Sole proprietorships and partnerships generally have a tax advantage over many corporations, especially large ones. E) Corporations of all types are subject to the corporate income tax. 4. Which of the following statements is CORRECT? A) One of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability. B) It is generally easier to transfer one’s ownership interest in a partnership than in a corporation. C) One of the advantages of the corporate form of organization is that it avoids double taxation. D) One of the advantages of a corporation from a social standpoint is that every stockholder has equal voting rights, i.e., “one person, one vote.” E) Corporations of all types are subject to the corporate income tax. 5. One drawback of switching from a partnership to the corporate form of organization is the following: A) It subjects the firm to additional regulations. B) It cannot affect the amount of the firm's operating income that goes to taxes. C) It makes it more difficult for the firm to raise additional capital. D)...
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...Abstract: An discussion of Denny’s Corporation’s accounting policies and financial statements as of December 26, 2012 as compared to Red Robin Gourmet Burgers Incorporated’s accounting policies Abstract: An discussion of Denny’s Corporation’s accounting policies and financial statements as of December 26, 2012 as compared to Red Robin Gourmet Burgers Incorporated’s accounting policies Accounting Policies Project Part 1 Accounting Policies Project Part 1 Table of Contents Report 1 Part 1: Discussion of the Balance Sheet Part 2: Discussion of the Consolidated Statements of Income Part 3: Discussion of the Statement of Cash Flows Part 4: Discussion of the Auditor’s Opinion Part 5: Discussion of Revenue Recognition Part 6: Discussion of Accounts Receivable Part 7: Discussion of Inventory and Cost of Goods Sold Part 8: Discussion of Property, Plant and Equipment Report 2 Part 1: Discussion of Intangible Assets Part 2: Discussion of Current Liabilities Part 3: Discussion of Long-Term Debt Part 4: Discussion of Leases Part 5: Discussion of Stockholder’s Equity Part 6: Discussion of Statement of Cash Flows Part 7: Overall Evaluation Denny’s Corporation Financial Statements Notes MD&A Red Robin Gourmet Burgers Inc. Financial Statements Notes MD&A Part 1: Discussion of the Balance Sheet This section will briefly overview and list the major components of Denny’s Corporation and Red Robin Gourmet Burgers, Inc.’s Balance...
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...possible domination the company could holder over its industry. This analysis will be used as a mean of reviewing the financial standing of the Comcast Corporation and analyze these resources the company has at hand. Property and Equipment Figure 1: Property and Equip Details The amount of property and equipment the company has on file for the years for 2013 and 2012 are $72, 414 and $66,657 respectively. The property and equipment are stated at cost. The depreciation is computed using the straight-line method and the recorded accumulated depreciation for 2013 was $42,574. Comcast capitalizes the costs associated with improvements that extend asset lives and expense repairs and maintenance cost as incurred (Comcast Corporation Annual Report on Form 10-K, 2013). These capitalized costs are associated with the new construction and improvements to...
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...Applied Finance Centre Assignment Cover Sheet Unit Code: Lecturer’s Name Assignment Title: Student’s Name: Student Number: Due Date: ECFS895 Unit Name: Private Equity Study Centre: AFC Stephane Chatonsky Private Equity Case Study Manuel Hernandez 43009492 4 September, 2012 th Date Submitted: 4 , September, 2012 th ACADEMIC HONESTY DECLARATION (this is very important please read carefully): By placing my name in this document I declare that: This assessment is my own work, based on my personal study and/or research; I have acknowledged all material and sources used in the preparation of this assessment, including any material generated in the course of my employment; If this assessment was based on collaborative preparatory work, as approved by the teachers of the unit, I have not submitted substantially the same final version of any material as another student; Neither the assessment, nor substantial parts of it, have been previously submitted for assessment in this or any other institution; I have not copied in part, or in whole, or otherwise plagiarised the work of other students; I have read and I understand the criteria used for assessment; The assessment is within the word and page limits specified in the unit outline or case study; The use of any material in this assessment does not infringe the intellectual property / copyright of a third party; I understand that this assessment may undergo electronic detection for plagiarism...
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...with an adjusted basis of $15 each. a. True b. False Answer: _____ 4. For purposes of the related party rules, the taxpayer's parents are "related persons," but the taxpayer's siblings (brothers and sisters) are not. a. True b. False Answer: _____ 5. The wash sale rules merely postpone the loss until the taxpayer sells the securities in a nonwash sale transaction. a. True b. False Answer: _____ 6. Leonard Lambert's commercial building, which had an adjusted basis of $500,000, was partially destroyed by fire. The fair market value was $800,000 just before the fire and $600,000 immediately after. Leonard received $150,000 insurance proceeds and deducted a $50,000 casualty loss. What is Leonard's basis in the building before any repairs are made? a. $300,000 b. $350,000 c. $450,000 d. $500,000 e. $600,000 Answer: __A___ 7. Which of the following items is not a reduction to the basis of an asset? a. Depreciation b. Assessments for maintenance of sidewalks c. Cash rebate from manufacturer d. Casualty losses Answer:...
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...Tax Midterm Chapter 1: Taxation- Its role in decision making Taxation and the financial decision process * Taxation is a controllable cost * Tax cost = cost of doing business * Analyzed to determine which actions or activities have a greater/lesser impact on the resulting tax cost * Each alternative= different impact on the amount of tax and the timing of the payment of tax * Even if marketing decision = direct effect on the long term tax cost of the firm → thus on profits and value * Tax= important on any decision making * Tax costs are relevant when alternative strategies are being considered * Cash flow (CF) exists only on an after-tax basis * All CF= after tax * NPV compared and ranked * Shows the actual value of the individual/corporation * Analysis can’t be of value unless the real tax impact is included * Alternative action to minimize the tax impact * After tax = % of interest x (1 – Tax rate) * 5% dividend on the equity of a “public corporation” = not deductible to the business → after tax = 5% (real cost) * Net value to individual investor subject to 45% tax rate = 3.6% (after applying dividend tax credit) The fundamental income tax structure and its complexity Taxpayers * Individuals * Corporations * Trusts | Business & investment structures * Proprietorship * Corporation * Partnership * Limited partnership * Joint venture...
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...destroyed by fire. the fair market value was $800,000 just before the fire and $600,000 immeditately after Leonard received $150,000 insurance proceeds and deducted a $50,000 casualty loss. what is leonard's basis in the building before nay repairs are made? a.300,000 b.350,000 c.450,000 d.500,000 e.600,000 2.lenn sells 100 shares (basis of $5,000) of x corporation common stock on March 8 2010, for $4,000. On march 29, 2010 lenn purchases 50 shares of x common stock for $2,500. lenn's recognized loss on the sale is: a.$1000 b.$500 c.$1500 d.$0 3. in 2010 allen sold an asset which cost $70,000. allen incorrectly claimed $40,000 depreciation over a five year period. he should have claimed $50,000 depreciation. what was the adjusted basis when sold? a. $0 b. $20,000 c. $30,000 d. $50,000 e. $70,000 4.which of the following items is not a reduction to the basis of an asset? a. depreciation b. assessments for maintenance of sidewalks c. cash rebate from manufacturer d. casualty losses 5. james sold property to a buyer who paid him $400,000 cash and assumed an existing mortgage of $150,000. the property had cost $250,000 and he had made improvements of $50,000. depreciation of $100,000 has been claimed and selling expenses were $20,000. what is the amount of gain? a. $100,000 b. $200,000 c. $250,000 d. $280,000 e. $330,000 6.brian receives a nontaxable stock dividend of 20 shares of y corporation common stock with a fair market value at distribution...
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...The company financial performance and recommendation for improvement Analysis The financial performance of the company over the last past year is presented in Exhibit 1. Over the five past five year, the average growth rate of the company was 11% whereas the industry growth rate where only 3%. The Gross profit margin is declining since 2008. Consolidated gross profit for fiscal 2010 was $2.28 billion, up $257.2 million, or 12.7%, over the prior year primarily due to the increase in sales volume. Gross profit margin of 11.9% declined 56 basis points over the prior year with all regions in each operating group experiencing declines in margins. SG&A expenses were 8.5% of sales and 71.0% of gross profit in fiscal 2010 as compared with 9.4% of sales and 75.7% of gross profit in fiscal 2009. Operating income for fiscal 2010 was $635.6 million, or 3.3% of consolidated sales, as compared with an operating loss of $1.02 billion for fiscal 2009. The performance of the company compared to the industry is presented below: Financial Stats | Competitors | AVNET | Revenue Growth | | | 3% | 11% | EBITDA Margin | | | 13% | 4% | EBIT Margin | | | 11% | 3% | Cash Flow Margin | | | 8% | 2% | Taxes | | | 31% | 23% | Debt / Equity | | | 14% | 18% | Return On Equity | | | 9% | 10% | Source http://www.wikiwealth.com/research:avt Recommendation We would recommend the company to remain competitive in its pricing of goods and services. The Company could...
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...period of more than one year. ACCOUNTING FOR PROPERTY, PLANT & EQUIPMENT Initial Measurement of PPE – at Costs Elements of cost 1. Purchase price, including import duties and nonrefundable purchase taxes, after deducting trade discounts and rebates. 2. Cost directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management Examples: a. Costs of employee benefits arising directly from the construction or acquisition of the item of PPE. b. Cost of site preparation c. Initial delivery and handling cost d. Installation and assembly cost e. Professional fees f. Costs of testing whether the asset is functioning properly after deducting the net proceeds from selling any items produced while bringing the asset to that location and condition, such as samples produced when testing equipment 3. Initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period for purposes other...
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...easyJet financial analysis Before I analyse the financial performance for easyjet plc, let me first introduce little background of the company. Easyjet is a low-cost European point-to-point short-haul airline, it use its cost advantage and number 1 and number 2 network positions in strong markets, to grown to become Europe’s leading airline. According to the information from the financial statements and news, the easyjet’s performance are as follow: 1. Profitability. Company’s profitability has been improved, which can be partly seen from the increased profit margin and ROCE ratios. * Firstly, operating profit margin has increased dramatically from 8.87% in 2012 to 11.79% in 2013, which was caused by 46.8% increase in PBIT and 10.5% increase in sales than 2012. This indicates that easyjets performed quite well last year in generating profits and showed a good control over operating cost. According to the annual report (2013) of easyjet, the successful introduction of allocated seating (a nice service) and additional 25 new routes have improved its customer proposition, and thus increased its sales volume by 4.0% in 2013 (Numbers of passengers: 2012: 58.4m 2013: 60.8m; Numbers of seats: 2012: 65.9m 2013: 68.0m), which directly enhance the revenue. Moreover, the operating cost was not increased as the same rate as revenue, which led to a high increase in PBIT. EasyJet’s cost advantage, which driven by its special lean programme and on-time...
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...Table of Contents Chapter 1 Taxation overview---------------------------------------------------------------- 1 2 General principles ---------------------------------------------------------------- 8 3 Specific principles on gross income------------------------------------------- 12 4 Pension receipts and payments------------------------------------------------- 22 5 Double Taxation------------------------------------------------------------------ 29 6 General deductions----------------------------------------------------------------34 7 Expenditure-------------------------------------------------------------------------38 8 Capital allowances-----------------------------------------------------------------48 9 Leasing------------------------------------------------------------------------------ 60 10 Exemptions------------------------------------------------------------------------- 66 11 Partnership-------------------------------------------------------------------------- 71 12 Farmers------------------------------------------------------------------------------ 76 13 Miners------------------------------------------------------------------------------- 85 14 Exports------------------------------------------------------------------------------ 98 15 Capital gains------------------------------------------------------------------------ 101 16 Hire purchase-----------------------------------------------------------------------...
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...CHAPTER 8 8-1 Tangible assets are those that can be seen and touched. Intangible assets are those rights or economic benefits that are not physical in nature. 8-2 All three terms refer to an allocation of costs over time. Reduction of intangible assets is generally called amortization. Depreciation is a reduction in buildings and equipment and other tangible assets. Depletion is a reduction in natural resources. 8-3 Cash discounts are reductions in original cost, not income. 8-4 When an expenditure is capitalized, it is not credited to stockholders' equity. Rather, it becomes an asset with a useful life in excess of one year. Technically aAn asset is debited and generally either cash or a liability is credited. 8-5 Accumulated depreciation is not cash; if specific cash is being accumulated for the replacement of assets, such cash will be an asset specifically labeled as a "cash fund for replacement and expansion" or a "fund of marketable securities for replacement and expansion." Accumulated depreciation is the cumulative amount of an asset’s depreciable value that has been expensed. 8-6 Valuation implies some measure of present market value. In contrast, depreciation is the systematic allocation of the original cost of the asset to as an expense on the income statement over the useful life of the asset.s useful life. 8-7 Depreciation is a method of cost allocation, not valuation. It simply allocates the cost of an asset to the periods that benefit...
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...status • Changes to dependents • Dependents • Legal name • Social Security number • Date of birth • Change of address or state residency Income Income from Employment • Forms W-2 for all employers for whom you and your spouse worked during the year Investment Income • Interest income - Form 1099-INT • Dividend income - Form 1099-DIV • Proceeds from the sale of stocks, bonds, etc. - Form 1099-B • Purchase information for all stock, bonds, etc. sold during the tax year • Purchase price • Purchase date • Schedule(s) K-1 (Form 1065) from investments in partnerships • Schedule(s) K-1 (Form 1120S) from investments in S Corporations Income from State and Local Income Tax Refunds • Form 1099-G from state or local governments Alimony Received • Amounts received during the tax year Business or Farming Income (Schedule C) • Form 1099-MISC • Books/accounting records for your business IRA/Pension Distributions • Form 1099-R for payments from IRAs or retirement plans • Account summary form for the year for your IRA accounts, or • Deposit receipts and contribution records Rental Property Income (Schedule E) • Please send the amounts for the following for each Rental Property: • Rents Received • Condo/Association Fees • Advertising • Auto and travel • Cleaning and maintenance • Commissions • Insurance • Professional fees • Management fees • Mortgage Interest (Please send copy of 1098) • Repairs • Supplies • Taxes (Please send copy of tax...
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...CONSTITUTION OF THE STATE OF GEORGIA (Revised January 2009) Designated as The Constitution of the State of Georgia For ordering information of a printed copy, go to www.sos.ga.gov/elections Brian P. Kemp Secretary of State State Capitol Atlanta, Georgia 30334-1505 Designated as The Constitution of the State of Georgia CONSTITUTION OF THE STATE OF GEORGIA TABLE OF CONTENTS ARTICLE I. Bill of Rights ... ........................................................... 1 ARTICLE II. Voting and Elections ... ............................................ 8 ARTICLE III. Legislative Branch ... ............................................ 2 1 ARTICLE IV. Constitutional Boards and Commissions . 28 ARTICLE V. Executive Branch ... ................................................ 2 3 ARTICLE VI. Judicial Branch ... ................................................. 6 3 ARTICLE VII. Taxation and Finance ... ..................................... 5 4 ARTICLE VIII. Education ... .......................................................... 9 5 ARTICLE IX. Counties and Municipal Corporations ... ........ 6 . 6 ARTICLE X. Amendments to the Constitution ... .................... 1 8 ARTICLE XI. Miscellaneous Provisions ... ................................ 3 . 8 CERTIFICATE GEORGIA, FULTON COUNTY This is to certify that, pursuant to the provisions of Article XI, Section I, Paragraph V of the proposed new Constitution of the State of Georgia...
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