...requirements for the taxpayer’s job, then the travel expenses are not deductible. Zeidler v. Commissioner, 132 F.3d 37 (7th Cir. 1997) it depends neither on the taxpayer’s reasons for undertaking a course of studies nor on what she intends to do (or not do) with her newly acquired knowledge” (Zeidler v. Commissioner, 132 F.3d 37 (7th Cir. 1997)). It means this test will base on the actual facts of the case. George A. Evan, et ux., TC Memo 2004-180 Business deductions—travel expenses—substantiation. Former professor/real estate broker and wife weren't entitled to travel expense deductions: neither taxpayers' testimony nor expense summaries reporting exact same mileage and parking fees for 60 separate trips were credible or sufficient to meet Code Sec. 274(d) 's strict substantiation requirements; and original records' loss in fire wasn't excuse. Code Sec. 7491(a) If , in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability of the taxpayer for any tax imposed by the taxpayer has complied with the requirements under this title to substantiate any item or the taxpayer has maintained all records required under this title and has cooperated with reasonable requests by the Secretary for witnesses, information , documents, meeting and interviews; IRC § 274(m)(2) Travel as form of education No deduction shall be allowed under this chapter for expenses for travel as a form of education. Ann Jorgensen...
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... CA 91768-4008 (909) 869-3700 Phone (909) 869-4757 FAX Name of Financial Aid Applicant (please print) Last Bronco Number: First Middle 2015 – 2016 EXPENSE AND INCOME STATEMENT Provide expense and income information for the 2014 calendar year. Section A: MONTHLY INCOME Complete the following information below. Parent information is required for “dependent” students only. If a zero income is reported for the student, spouse and/or parents, please submit a letter explaining how you and your family meet expenses reported below. Student (include spouse, if applicable) Student Income: Spouse Income: Savings/Other Assets: Other Resources: $ $ $ $ Student’s Parent(s) (Dependents students only) Student ‘s Mother/Stepmother Income: Student ‘s Father/Stepfather Income: Savings/Other Assets: Other Resources: $ $ $ $ (include: financial aid, monetary gifts, interest income, parental allowance, free rent, etc. - List Resources Below) (include: financial aid, monetary gifts, interest income, rental income, etc. - List Resources Below) Total: $ Section B: MONTHLY EXPENSES Total: $ Complete the following information below. Parent information is required for “dependent” students only. If expenses exceed income, please include a letter explaining how you and your family meet your expenses (include other sources of support) with the income reported above. Student (Include spouse, if applicable) Rent/Mortgage: Food/Utilities: Transportation: Medical/Dental:...
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...Asam, Accts. 3121 Writing Assignment 1. October, 8th 2012 The issue here is about how to treat an extensive advertising campaign cost for reporting purposes in Target Inc. The Controller (CFO), Steve Smith is holds that it should be reported as an expense for the current period, basing his argument on the conservative principle of accounting which had been in place in the company. However, the Vice President and the CEO disagree with him and insists that the expense be reported as part of manufacturing overhead cost until the goods are sold, then can it be recorded as an expense. If it is not treated expensed for the current period, then it will be capitalized and thus will appear only in the balance sheet and not in the income statement. This will indicate a high net income. For financial reporting purposes, the practical problem of how to handle advertising expenditures is both one of measurement and of uncertainty about whether the actual future benefits exits. Until this happens, then can the company know whether to expense it or not. However, if the advertising creates an immediate benefit then it should be expense which is the norm for tax and financial reporting purposes which is the bone of contention in this issue. I think leaders of this company are faced with a situation where their corporate governance principles and their ethical values are put to test especially as it seems that the going is tough and their jobs might be at risk. The extensive advertising...
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...MGMT. 703 – 101 Ethics & Stakeholder’s Management Individual Assignment # 1 The Travel Expense Billing Controversy and The False Claims Act 1. Why would an independent audit firm, like PwC, that depends upon the maintenance of its reputation for integrity and professionalism, to retain and attract clients, risk the loss of that reputation by engaging in what appears to be unethical behavior (not returning travel expense rebates)? Explain your answer and reasoning. * Pricewaterhouse Coopers (PwC) is a major accounting firm and has a strong foothold in financial markets. The company remarked that their employers were engaged in unethical billing practices through which they are earning millions of dollars. The company was earning huge rebates on airline tickets and other travel expenses that were being charged to different clients associated with the company. The firm’s Global-Travel director replied it as, the negotiations were associated with the travel deals and not with the clients, so in this case any rebates or discounts earned are company’s profit. The company failed to attain integrity and industrial professionalism by committing this unethical practice for their own advantages. The company was greedy in earning profits through unethical practices and overlooked the reputation of the company in front of their clients and the overall financial market. It was not the company as a whole, but some of its senior executives who were not loyal and honest...
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...Capital Investments vs. Operational Expenses MBE 503: Accounting and Ethics Instructor James Wright Kimberly Stringer Regular expenses can be expensed as they are incurred or they can be capitalized. Day to Day functions of a business require operating expenses in order to run. Operational Expense (OPEX) include sales and general administrative expenses which do not include cost of goods sold or COGS, taxes, depreciation or interest. Operating expenses show on the profit and loss whereas capital expenditures show as major investments and show on the balance sheet and are depreciated over time (www.diffen.com). Marketing expenses are usually operating expense unless it shown that it has long term benefits. Some believe that if a company is expected rapid growth the recording items as an operating expense is better. However, Bernard Golden from CIO.com believes otherwise. “Once you have purchased a capital good, you’re stuck with it, as anyone who has purchased a car understands; even if you’re no longer excited about owning it, the finance company still expects a monthly payment. By contrast if you rent a car, you are committed to it only as long as you want to use it and once you have paid for that use, you have no further financial obligation”. Companies usually want to direct their investment into generating revenue and this is why they would rather lease than purchase (Logicalis, 2013). Some expenditures for startup costs can be capitalized in the United...
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...TAX TREATMENT OF PRIVATE JET EXPENSES Facts: Alex Jones owns a small software company, Find Donuts, Inc in Michigan. A patent on a smartphone application named Find Donuts which is designed to locate donuts shops, is the only asset of Find Donuts, Inc. With the intention of promoting the sales of the Find Donuts smartphone app and increasing company revenue, Alex Jones attended a computer conference in June 2010, in San Francisco. Alex also owns a Christmas tree farm in Oregon. Primary purpose of this farm being profit but not leisure, it qualifies as a business to be reported in Schedule C of Alex’s federal income tax return. In December 2010, Alex paid a visit to this farm to oversee the sales of trees. In July 2010, Alex flew to Honolulu, Hawaii to supervise the construction of two additional bedrooms to a house he owns there. He leases this house to a couple, and they operate the house as bed and breakfast (B&B). Those two newly constructed bedrooms were an addition to their B&B. For the above trips he made to San Francisco, Oregon and Hawaii in 2010, Alex used his Lear jet that he purchased in 2000 for 1 million. Each trip cost him $ 100,000. Issues: Does the operational cost for Alex Jones’ jet for the above three trips qualify to be deducted as a necessary or ordinary business expense incurred in conducting a trade or business under IRC Sec. 162? Conclusions: Alex Jones’s expense of $300,000 made in using his Lear jet to travel to three...
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...outweighs the risk. Traveling business people have opportunities to pad or inflate expenses when traveling. Whether it's cashing in full-fare airline tickets and flying secretly on cheaper non-refundables or simply grabbing a few extra taxicab receipts, the middle-income corporate traveler who spends a lot of time on the road can find ways to pad their expenses another $5,000 or $10,000 per year without too much trouble, according to Joseph Wells, chairman of the Association of Certified Fraud Examiners.(USA2day) It can be hard to do the right thing when no one is watching, but it is equally difficult when you are facing peer pressure. I imagine that if my colleagues were encouraging me to inflate my expense account, the factors that would influence my choice would include the following: My faith, what my peers thought of me and my economic standings. If the action of not inflating my expenses would call attention to my colleagues inflation, it would make the decision more difficult. Obviously, if my family were struggling economically, and inflating my expenses could bring in enough extra money to pay for something we needed desperately, saying no would be all the more difficult. The only factor that should influence my decision, however, is my faith. Being a Christian, I am called to be salt and light to this world. (Bible) Therefore, the decision I would make would be to accurately report my expense account, no matter what my colleagues thought of me for doing...
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...outweighs the risk. Traveling business people have opportunities to pad or inflate expenses when traveling. Whether it's cashing in full-fare airline tickets and flying secretly on cheaper non-refundables or simply grabbing a few extra taxicab receipts, the middle-income corporate traveler who spends a lot of time on the road can find ways to pad their expenses another $5,000 or $10,000 per year without too much trouble, according to Joseph Wells, chairman of the Association of Certified Fraud Examiners.(USA2day) It can be hard to do the right thing when no one is watching, but it is equally difficult when you are facing peer pressure. I imagine that if my colleagues were encouraging me to inflate my expense account, the factors that would influence my choice would include the following: My faith, what my peers thought of me and my economic standings. If the action of not inflating my expenses would call attention to my colleagues inflation, it would make the decision more difficult. Obviously, if my family were struggling economically, and inflating my expenses could bring in enough extra money to pay for something we needed desperately, saying no would be all the more difficult. The only factor that should influence my decision, however, is my faith. Being a Christian, I am called to be salt and light to this world. (Bible) Therefore, the decision I would make would be to accurately report my expense account, no matter what my colleagues thought of me for doing...
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...Accrued Expense “Accrued expenses are expenses that have occurred but are not yet recorded through the normal processing of transactions. Since these expenses are not yet in the accountant's general ledger, they will not appear on the financial statements unless an adjusting entry is entered prior to the preparation of the financial statements.” (What are accrued expenses, n.d. pg.1) If an adjusting entry is made it should be journalized in the period in which it occurred and not the period which it was paid. Some examples of accrued expenses that need to be adjusted are interest on loans, supplies/services received but not been billed for, taxes incurred, or salaries employees have earned but not yet been paid. To take a deeper look inside how we should adjust this type of journal entry we will demonstrate an adjusted entry for interest incurred from a loan. Hypothetically if Kemcor International pays the interest on a loan amounting to $5,000 on December of 2014 for a billing period of January 14th 2014, Kemcor International accounting period ends on the 31st of Dec 2014. Kemcor will then recognize the interest expense of $5,000 for the year of 2014 even though it was paid in the following accounting period. The following entry is what is to be recorded for interest expense accrued. | | Amount | Debit | Interest Expense | 5000 | Credit | Interest Payable | 5000 | Then when payment is actually made on January 14th you would then create...
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...Lacey Tucker PA203 Unit 3 Medical expenses/billing report Professor Olson August 17, 2014 Medical Service | ChargedTo HMO | Agreedto | % Diff. | $ Diff. | Typical Cost | % Diff. | $ Diff. | | | | | | | | | Office Visit | $ 60.00 | $ 45.00 | 25% | $ 15.00 | $ 47.50 | 20.83% | $ 12.50 | Pain Medication | $120.00 | $100. | 17% | $20 | $85.75 | 28.54% | $34.25 | Plastic Surgery | $15,000 | $15,000 | 0% | $0 | $14,000 | 6.7% | $1000.00 | Physical Therapy | $75.00(per visit) | $55.00 | 27% | $20. | $50.00 | 33.3% | $25.00 | Chiropractor | $ 100.00(Per visit) | $ 70.00 | 30% | $ 30.00 | $ 57.00 | 43% | $ 43.00 | Total Overages Date | Charge Type | Amount Overcharged | | | | 03/01/2002 | Office Visit | $ 15.00 | 03/15/2002 | Office Visit | $ 15.00 | 04/01/2002 | Office Visit | $ 15.00 | 04/15/2002 | Office Visit | $ 15.00 | 05/01/2002 | Office Visit | $ 15.00 | 05/15/2002 | Office Visit | $ 15.00 | 03/01/2002 | Pain Medication | $ 20.00 | 04/01/2002 | Pain Medication | $ 20.00 | 05/01/2002 | Pain Medication | $ 20.00 | 06/01/2002 | Pain Medication | $ 20.00 | 03/01/2002 | Physical Therapy | $ 20.00 | 03/08/2002 | Physical Therapy | $ 20.00 | 03/15/2002 | Physical Therapy | $ 20.00 | 03/22/2002 | Physical Therapy | $20.00 | 03/29/2002 | Physical Therapy | $ 20.00 | 04/07/2002 | Physical Therapy | $ 20.00 | 04/15/2002 | Physical Therapy | $20.00 | 04/22/2002 | Physical Therapy | $ 20.00 | 04/29/2002 | Physical...
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...Affirmative Action and Social Psychology Tamara Hill PSY11017VA016-1134001(Social Psychology) Profess. Jason Hamilton June 08, 2012 Bottom of Form Over the years there are a number of laws that have been put in place that has shaped society and paved the way for many to succeed. The Affirmative Action Law is one of the laws that were established to provide an equal playing field in many environments such as schools, employment, businesses and our daily lives in society. For many years there have been unrepresented groups that experienced discrimination during times of enrollment into schools, on the job promotions and even when trying to receive bank loans to start up his or her own business. Since the establishment of Affirmative Action in 1961it has paved the way to ensure that unrepresented groups are represented throughout society as we know it today. This law has been amended several times to ensure that no minority group is unrepresented in any circumstance. In the 1960’s Affirmative Action in the United States was used as a tool to address the persistent discrimination against African Americans. This specific term was first used to describe US government policy in 1961. President John F. Kennedy in 1961 mandated "affirmative action to ensure that applicants are employed, and that employees are treated equally during employment, without regard to their race, creed, color, or national origin (Peters...
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...(fixed assets and bond investments) Accounts payable and other liabilities $250,000 Capital stock 1,000,000 Retained earnings Service revenue 700,000 Sec. 103 Interest income - State of North Carolina Bonds 50,000 Salary expense, payroll taxes, rent, depreciation, etc. 400,000 Sec. 1211, 1212 Loss on sale of capital assets 20,000 Trial Balance Total (before recording the income tax provision) $2,000,000 $2,000,000 Assume federal corporate income tax rate is 40% for all years, and there is no state income tax. 1 What is the amount of the corporation's GAAP net income before taxes? 3 Points Revenue $750,000 Note: Only two Expenses 420,000 accounts have bookNet income before income tax $330,000 tax differences. 2 Enter net income per books. Present adjustments needed to compute taxable income. 3 Points Net income per books $330,000 Less Municipal bond interest (50,000) Add capital loss 20,000 Taxable income $300,000 3 Compute the deferred tax account balance(s). 3 Points Capital loss $20,000 Tax rate 40% Deferred tax asset $8,000 4 Provide journal entry for income tax provision (current & deferred). Do not record an allowance account for the deferred tax account. Ignore uncertain positions when making this set of journal entries. 3 Points Current income tax expense 120,000 Current income tax payable 120,000 Deferred tax asset 8,000 Deferred tax benefit 8,000 5 Compute GAAP net income after taxes. Start with GAAP net income before taxes. 3 Points GAAP Net Income Before Taxes $330,000...
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...Group 2 – FB0605 Nguyễn Thị Thu Hà – FB00444 Dư Đức Tùng – FB00410 Phan Ngọc Mẫn – FB00422 Ngô Băng Linh – FB00353 Travel expenses: A chance for extra income 1. Case summary: 2 2. Ethical issues 2 3. Analysis: 3 a) Ethics theories: Utilitarianism and Deontology 3 b) Apply in the case: 4 4. Solutions: 5 1. Case summary: Nowadays, every company always support for employees to improve working efficiency by paying for traveling and entertaining expenses. However, from that reasonable policy, there are many faults which happen by employees who always try to maximize their expenses reached to the company’s limitation. These expenses even include many things which don't relevant to employees themselves and irrationality such as: * One employee submitted a bill for $12 for a tin of cookies * $625 for wallpapering included in her travel expenses and even had the receipt written in foreign language in order to throw off any questions * $275 sports jacket submitted as a restaurant bill. If one employee adds $1 in his/ her bill, it may not affect a lot but let's imagine that every employees in company do that times by times, what's happen and what consequences does company have to face up with? 2. Ethical issues Firstly, in the aspect of personal integrity, employees in the case violated some rules relate to the necessary...
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...Capital Expenses Financial Resource Management HSC571 July 21, 2014 Capital Expenses At Baptist Hospital Cancer Center it has been determined that a proposal for expenses for a digital imaging system is needed. This system is the BioVision by Faxitron. It is a Digital Surgical Biopsy Specimen Imaging System. The total cost is $99,875.00. With this acquisition it will include an instant corroboration of an effective biopsy procedure. This system has over twenty features. Some of these includes the 10cm x 15cm digital detector, high resolution 2.3 MP flat-panel LCD monitor, Ergonomic Keyboard, Transparent Imaging Door, 3 Hour Battery Backup Operation, Battery Life Indicator, Automatic Exposure, Automatic Calibration, 2 times Magnification, and DICOM compliant. The best feature will be the time saved in the operating room by using this imaging system. Additionally it includes one year warranty and one day of in-service training by a factory trained professional. This proposal explains how the acquiring of Faxitron’s BioVision is supported by the organizations goals and management needs and improving the financial well being of the Miami cancer center. The purpose for this report is to establish the need to invest in this system. The report will disclose financials and operating costs. The Baptist Hospital Cancer Center is a corporation that provides outpatient treatments to patients in its targeted area. Most of our patient about 85% to 90% will have...
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...CASE 2-1 Revenue and Expense Recognition—Orthodontic Centers of America CASE OBJECTIVES The objective of this case is to evaluate the revenue and expense recognition methods used by the company. INTRODUCTION The following information was extracted from the 1999 and 2000 annual reports of Orthodontic Centers of America [OCA]. The company provides practice management services to orthodontic practices in the United States. OCA acquires and develops orthodontic centers and manages the business operations and marketing aspects of affiliated orthodontic practices. At December 31, 2000, there were 592 orthodontic centers, of which the company developed 306 and acquired 361 (75 were consolidated into another center). The affiliated orthodontists control the orthodontic practices, determine which personnel, including orthodontic assistants, to hire or terminate, and set their own standards of practice in order to promote quality orthodontic care. A typical patient receives an initial consultation and preliminary procedures (teeth impressions, x-rays, and the placing of spacers between the teeth for braces) in advance of the next appointment. The patient signs a contract for treatment in the event the orthodontist recommends orthodontic treatment. Generally, braces are applied two weeks later and subsequent adjustments to the braces are made every four to eight weeks. The contract specifies the terms and the length of the treatment as well as the total fees. The average contract length...
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