Question & Answer

Jayanna, an advertising consultant, is contemplating instructing some of her clients to pay her in cash so that she does not have to report the income on her tax return.  Use an available tax service to identify the three basic elements of tax evasion and penalties associated with tax evasion.  Write a memo to Jayanna explaining tax evasion and the risks associated with her actions.

What are the two basic types of clamping units?

Included in Outkast Company’s December 31, 2014, trial balance are the following accounts: Prepaid Rent $5,200; Debt Investments (trading) $56,000; Unearned Fees $17,000; Land (held for investment) $39,000; Notes Receivable (long-term) $42,000. Prepare the long-term investments section of the balance sheet.

Explain how an underfunded public pension fund can affect the debt rating of a city or state. (LO4)

Robert has found a “favorable” authority directly on point for his tax question.  If the authority is a court case, which court would he prefer to have issued the opinion?  Which court would he least prefer to have issued the opinion?

How are realized income, gross income, and taxable income similar, and how are they different?

Eisler Corporation issued 2,000 $1,000 bonds at 101. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling in the market at 98, and the warrants had a market price of $40. Use the proportional method to record the issuance of the bonds and warrants

Developing a reward system Synergy Ltd’s incentive plan is based on a shared bonus pool. Return on investment (ROI) is used as the main performance metric and is calculated as: Operating profit before tax ÷ Assets at gross book value   Receipt of the incentive is dependent on the achievement of annual ROI targets. These targets were set in consultation with division managers. Moreover, the senior management team is rewarded on the basis of organisational ROI. The amount of bonus received by managers is determined as follows. The bonus pool is determined as:   $100 000 + 10% of increases in annual combined ROI   The bonus pool is shared 15 per cent to senior management (shared equally among 10 managers on the basis of organisational ROI), 50 per cent to divisional managers (shared among three managers according to divisional ROI) and 35 per cent to managers within the divisions (shared among 12 mangers according to divisional ROI). The bonus payment is in the form of cash. While some members of the management team have expressed concerns about the use of ROI as the key performance metric, the CEO is intent on keeping things simple and believes that ROI is a good summary measure on which to base senior management and divisional manager rewards. One of the senior managers, Sonia Lee, has become persistent in her objections to the current bonus scheme. She feels the scheme needs to reflect shareholder interests with suitable measures at each level of the company that reflect managers’ span of control and the right mix of incentives.   Required You have been asked to advise the board of Synergy Ltd on a possible new incentive plan that addresses the concerns of Sonia Lee. Prepare a report outlining the detail of your incentive plan. Make sure you explain how your plan addresses Sonia’s concerns.             (LO2 and 4)

Are taxpayers required to include all realized income in gross income? Explain.

How can the financial problems of one large bank affect the market’s risk evaluation of other large banks? (LO5)

Why should a taxpayer be interested in the character of income received?

What are the scientific and technical disciplines associated with nanoscience and nanotechnology?

For each of the four part drawings in Figure P16.14, indicate which PM class the parts belong to, whether the part must be pressed from one or two directions, and how many levels of press control will be required? Dimensions are mm.

Determine the direction of bond prices over the last year and explain the reason for it. (LO1, LO2)

What are the basic types of contaminants that must be cleaned from metallic surfaces in manufacturing?

What is the difference between gross income and adjusted gross income, and what is the difference between adjusted gross income and taxable income?

How do taxpayers determine whether they should deduct their itemized deductions or utilize the standard deduction?

What purpose does the variety in bond features (types and characteristics) serve?

Why are some deductions called “abovetheline” deductions and others called “belowtheline” deductions?What is the “line”?

What are the three major stages in the production of silicon-based integrated circuits?

1.       : Discuss some of the potential positive and negative aspects of sending digital nudges to managers via e-mail or text messages. What do you see as the most important ways for managers to use this technology?

Credit default swaps were once viewed as a great innovation that could make mortgage markets more stable. However, these swaps have been criticized for making the credit crisis worse. Why? (LO7)

1.    Do you think it is realistic that BOP business practices can have a positive effect on poverty and other social problems in developing countries? Discuss how those effects might occur.

Compare and contrast the relationship test requirements for a qualifying child with the relationship requirements for a qualifying relative.

In general terms, what are the differences in the rules for determining who is a qualifying child and who qualifies as a dependent as a qualifying relative?Is it possible for someone to be a qualifying child and a qualifying relative of the same taxpayer?Why or why not?