Cash dividends is a distribution of cash to shareholders. For a corporation to pay a cash dividend, it must have all three of the following: 1. Enough retained earnings 2. Enough cash 3. A declaration of dividends On the declaration date, a company’s board of directors formally declares the cash dividend and announces it to shareholders. ● An entry is required to recognize the increase in cash dividends and the increase in the current liability dividends payable. Example: To
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therefore subject to tax) in the year in which it’s received. Conclusion: Peaceful should pay the audit based on the facts. The IRS is correct according to the tax code and laws. Analysis: Peaceful receive prepay from their customers for funeral goods and service, so Peaceful have to pay taxes on the prepaid sales. According to The Strategic CFO, prepaid income tax is a form of prepaid expense. The most common reason why prepayment on income taxes occurs is due to over-estimation of tax deposits. In
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Memo To: Hunter Hart From: Student Date: Re: 2010 Tax Research Question Facts: During 2010, Hunter Hart lived with Helen Hunt for the whole year in Ferndale, MI. Helen is a 19 year old, single, female U.S. citizen. Hunter supported Helen because her income for the whole year was $3,640 from waitressing jobs. Hunter also was not married for the whole year of 2010. In Michigan, it is a misdemeanor for unmarried individuals to cohabit. Issue: Can Hunter claim Helen as a dependent, qualifying
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Memo To: Chief Executive Officer From: Nicholas Petrovich cc: Controller Date: February 12, 2013 Re: Income Taxes After reviewing Deloitte (D) guidance and the requirements of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740, Income Taxes, we addressed (1.) What are the four possible sources of taxable income according to ASC 740? (2.) How much of the reversing taxable temporary differences may be considered in estimating taxable income? (3a
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of this memo is to help explain why a subsidiary would be set up as a corporation. When looking into deferred taxes, it is imperative to look into what the Financial Accounting Standards Board (FASB) has to say about the subject. " deferred tax liability is recognized for temporary differences that will result in net taxable amounts in future years." ("Financial Accounting Standards Board," n.d.). More simply stated deferred tax is a tax that is paid at a later period (ex. income tax, capital
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NATIONAL UNIVERSITY Syllabus Department of Management Detailed Syllabus Second Year Four-Year B.B.A. (Honours) Course Effective from the Session : 2009–2010 National University Syllabus for 4 years B. B. A. Honours Course Subject : Management Second Year (Honours) |Subject Code |Subject Title |Marks |Credit | | |Business Communication and Report
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Tax Research Memo Personal Injury winning treatment and other issues research ________________________________________________________________ XYZ CPAs NearLakes City John Smith tax issues 1 a Issue: Treatment for purposes of Federal Tax Income of $300,000 fee received out of the amount awarded by Jury. Applicable Law: Any winnings in a personal injury lawsuit that cover the treatment of physical injuries
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This memo outlines the following questions: What is the methodology used in determining deferred taxes, what is the procedures for reporting accounting changes and error corrections, and what is the rationale behind establishing the subsidiary as a corporation. It will also detail the professional responsibilities of a CPA and what the differences between a review and an audit are. The professional responsibilities of a CPA are to uphold the rules set forth by the State board of Certified Public
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Based on the relevant facts and circumstances Mrs. Jones would not be entitled to full relief from joint and several liability on the issues of the understatement of the gambling gains and gains on the sale of stock and real estate. She would qualify for partial relief under section 6015(f) for the embezzled funds. This omission is attributed solely to her husband; she had no knowledge or reason to know. Furthermore, she received no benefit from the embezzled funds, which were used to support his
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2013 Budget Speech Minister of Finance Pravin Gordhan 27 February 2013 ISBN: 978-0-621-41456-1 RP: 345/2012 To obtain copies please contact: Communications Unit National Treasury Private Bag X115 Pretoria 0001 Tel: +27 12 315 5526 Fax: +27 12 315 5126 Budget documents are available at: www.treasury.gov.za 2013 Budget Speech Honourable Speaker I have the honour to present the fourth budget of President Zuma’s administration. Mr President you said in the State of the Nation address
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