| The following transactions are each independent transactions. a) On March 1, 2013, a long-time debtholder has agreed to convert $20,000 of his debt to 1,000 Preferred shares with a paid up capital of $22,000. Assume that S. 51 of the Income Tax is not applicable. On April 1, 2013, a different shareholder with 500 Preferred Shares sold them for $11,000 in an arm’s length transaction. He had purchased the shares for $8,200 in 2011. b) A different investor owns 200 of the common shares
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With tax season approaching, I wanted to share information about a tax-advantaged retirement account that everyone receiving taxable compensation in 2014 can fund. You have until April 15 to make an Individual Retirement Account (IRA) contribution of up to $5,500 1 for the 2014 tax year. Accounts and Eligibility There are two types of IRAs -- Traditional and Roth. You can make a full Roth IRA (post-tax) contribution if your individual* 2014 Modified Adjusted Gross Income (MAGI) 2 is less
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The Tax Structure Tax base - amount to which tax rate is applied - also known as taxable income (federal income tax) Taxable income - gross income reduced by certain deductions (business and personal) Figure 1.2 Formula for Federal Income Tax on Individuals Tax rates - applied to tax base to determine taxpayer's liability - may be proportional or progressive 1. proportional - rate of tax remains constant (e.g. most excise, general sales, employment including FICA and FUTA) 2. progressive
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AC1220 Lab 5.2 Introduction On July 25, 20x1, Jake’s Computer Sales and Repair enters into an agreement with Inner-Tech, a local computer software development firm. Inner-Tech pays Jake’s Computer Sales and Repair $45,000 in advance for ongoing computer repair services. At year-end, Jake determines that $38,500 of this amount has been earned. Requirement 1 a. Journalize the unearned revenue transaction on July 25, 20x1. DATE | Account and Explanation | DEBIT | CREDIT | Jul 25 |
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having a business partnership are that there is more capital put into the business and that the obligations and debts are shared among each partner. Individuals who are part of a partnership can also deduct their losses through their personal income tax. There are a few disadvantages to being part of a partnership are that all profits are shared and that all decisions need to be made by each partner (Cheeseman, 2013). A C Corporation is any corporation that is taxed separately from its owners. Corporations
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ACC 555 Entire Course Individual Tax Research and Planning To Buy this Class Copy & paste below link in your Brower http://homeworkregency.com/downloads/acc-555-entire-course-individual-tax-research-and-planning/ Or Visit Our Website Visit : http://www.homeworkregency.com Email Us : homeworkregency@gmail.com ACC 555 Entire Course Individual Tax Research and Planning ACC 555 Assignment 1 – Tax Research Imagine that the Internal Revenue Service (IRS) has selected your client for
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How tax strategies impact on the Social Economic Problem? We are going to highlight some social issues and whether the tax strategy is effective in dealing with the issues. The issues discussed include the issue of urbanisation on vacant land, child poverty, inflation and unemployment. Issue 1: Tax Penalty: Eliminate Land Speculation and Vacant Land to avoid Poverty The urbanisation level of 56.25% in South Africa has recorded the world highest level in 2001. The “Apartheid City was a political
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alike such as obesity and gun use. Over the past several months, headlines in the news have been echoing “Chocolate Milk Removed from School Lunches,” and “Senate Considers Federal Tax on Soda.” While the removal of chocolate milk from school menus has actually happened in certain school districts across the country, federal tax on sodas has only been a proposal at this point. However, both echoes resounding through the news originated from escalating research that America’s twin epidemics of diabetes
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along with the advantages and disadvantages of each type of business structure: the corporation, limited liability company (LLC), limited liability partnership (LLP), partnership, and sole proprietorship. The following will also explain the potential tax consequences of each structure. Corporation The third choice is a corporation; the creation of a corporation provides two structures, “C” corporation and an “S” corporation. They are similar structures, but have a few differences. The “S” corporation
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liability. A sole proprietor suffers from unlimited liability. The owner becomes liable personally for all the obligations and debts of the business. The second characteristic is income taxes. Businesses pay federal income tax just like individuals. In a sole proprietorship, the owner pays income tax only once on the business income, which he or she reports on their personal income form. The third characteristic is control. In a sole proprietorship, the owner makes all the decisions concerning the business
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