Question 1
Please i need solutions to this questions by 7:00pm today or earlier. 1. Aaron owns a venture capital firm. One of his employees at the firm has a great idea for a new technology company and wants Aaron to invest. Due to the employees exceptional services over the past year, Aaron decides offer the employee a loan with a below market interest rate. What are the tax consequences to the employee regarding the difference in the interest rate? (Points : 5) 2. Jim and Sally are relatives. Jim loans Sally $12,000 to buy a new car. After Sally has paid back $2,000, Jim decides to forgive the rest of the loan and let Sally enjoy her car. What are the tax consequences to Sally? What about to Jim? What if Jim?s loan had been $25,000 instead of $12,000 and Sally hadn?t repaid a dime before Jim decided to forgive the balance? (Points : 5) 3. A local investment company loans Derek $80,000 to start his own small business. A month later, the federal government passes a bill reimbursing all investment companies for small business loans made under $100,000. Derek is therefore discharged from his entire loan. What are the tax consequences to Derek on the $80,000? (Points : 5) 4. Dave works as a partner at an accounting firm. In order to land a big new client, he takes them out to the trendiest nightclub in town and pays for both meals and drinks. To cap things off at the very end of the night, he orders a bowl of caviar and crackers and a buys $5,500 bottle of champagne. The next day he takes the clients to an exclusive VIP cocktail mixer related to the reelection of the client?s preferred political candidate (and pays for their entrance, drinks, and political contribution), and then to a country club to play in the monthly local accounting association golf matches (and pays for their golf fees and meals). Are these entertainment expenses deductible? If so, how much of the costs are deductible? Please explain. Feel free to use IRS Publication 463 to assist your answer - http://www.irs.gov/pub/irs-pdf/p463.pdf (Points : 5) 5. Bill is a partner in an accounting firm. To find some new clients, he decides to join the ritziest county club in the area so he can socialize with wealthy individuals. After joining, he meets a business executive named Todd. Bill takes Todd to an NBA basketball game by buying out an entire private luxury box for just the two of them (and their wives). Todd has so much fun that the next week Bill buys tickets to another game of the same NBA team and gives them to Todd so he and his wife can go by themselves. Are these entertainment expenses deductible? If so, how much of the costs are deductible? Would your answer change if Bill wasn?t an accounting partner but instead was a sports executive in the NBA? Please explain. Feel free to use IRS Publication 463 to assist your answer - http://www.irs.gov/pub/irs-pdf/p463.pdf (Points : 5) 6. Four business men named W, X, Y, and Z decide to form a partnership called InvestX. The partnership is a for-profit business organized under US tax laws. Partner W contributes an office building valued at $200,000. He bought it six years ago for $120,000 but had to pay recording fees, broker fees, and property taxes for an additional $35,000 at the time of purchase. Partner X decides to give InvestX some artwork for the office building that he purchased for $250,000 three years ago. The artwork is currently valued at $55,000 however, as last year the pieces were discovered to be fraudulent replicas rather than originals as previously thought. Partner Y doesn?t want to offer money or property but, as an attorney, agrees to write the operating documents for InvestX as well as numerous contracts and agreements the business needs to get started. The services he contributes are worth approximately $25,000. Partner Z is in the technology business decides to trade for his interest in InvestX by giving the partnership 28 PC desktop computers he has in his warehouse. The computers are two years old and worth about $30,000, but have a zero basis in his hands due to depreciation and amortization. Please answer the following questions worth 5 points each: 1. What is W?s basis in his partnership interest? What is the basis for InvestX? What is the realized gain or loss for both parties? 2. What is X?s basis in his partnership interest? What is the basis for InvestX? What is the realized gain or loss for both parties? 3. What is Y?s basis in his partnership interest? What is the basis for InvestX? What is the realized gain or loss for both parties? 4. What is Z?s basis in his partnership interest? What is the basis for InvestX? What is the realized gain or loss for both parties?What is Z?s basis in his partnership interest? What is the basis for InvestX? What is the realized gain or loss for both parties? 5. InvestX decides to open a subsidiary nearby its headquarters and donate all the artwork obtained from Partner X as a capital contribution. What are the tax consequences (realized and recognized gain or loss) for each party? (Points : 25),Please i need solutions to this questions by 7:pm today. Thanks 1. Aaron owns a venture capital firm. One of his employees at the firm has a great idea for a new technology company and wants Aaron to invest. Due to the employees exceptional services over the past year, Aaron decides offer the employee a loan with a below market interest rate. What are the tax consequences to the employee regarding the difference in the interest rate? (Points : 5) 2. Jim and Sally are relatives. Jim loans Sally $12,000 to buy a new car. After Sally has paid back $2,000, Jim decides to forgive the rest of the loan and let Sally enjoy her car. What are the tax consequences to Sally? What about to Jim? What if Jim?s loan had been $25,000 instead of $12,000 and Sally hadn?t repaid a dime before Jim decided to forgive the balance? (Points : 5) 3. A local investment company loans Derek $80,000 to start his own small business. A month later, the federal government passes a bill reimbursing all investment companies for small business loans made under $100,000. Derek is therefore discharged from his entire loan. What are the tax consequences to Derek on the $80,000? (Points : 5) 4. Dave works as a partner at an accounting firm. In order to land a big new client, he takes them out to the trendiest nightclub in town and pays for both meals and drinks. To cap things off at the very end of the night, he orders a bowl of caviar and crackers and a buys $5,500 bottle of champagne. The next day he takes the clients to an exclusive VIP cocktail mixer related to the reelection of the client?s preferred political candidate (and pays for their entrance, drinks, and political contribution), and then to a country club to play in the monthly local accounting association golf matches (and pays for their golf fees and meals). Are these entertainment expenses deductible? If so, how much of the costs are deductible? Please explain. Feel free to use IRS Publication 463 to assist your answer - http://www.irs.gov/pub/irs-pdf/p463.pdf (Points : 5) 5. Bill is a partner in an accounting firm. To find some new clients, he decides to join the ritziest county club in the area so he can socialize with wealthy individuals. After joining, he meets a business executive named Todd. Bill takes Todd to an NBA basketball game by buying out an entire private luxury box for just the two of them (and their wives). Todd has so much fun that the next week Bill buys tickets to another game of the same NBA team and gives them to Todd so he and his wife can go by themselves. Are these entertainment expenses deductible? If so, how much of the costs are deductible? Would your answer change if Bill wasn?t an accounting partner but instead was a sports executive in the NBA? Please explain. Feel free to use IRS Publication 463 to assist your answer - http://www.irs.gov/pub/irs-pdf/p463.pdf (Points : 5) 6. Four business men named W, X, Y, and Z decide to form a partnership called InvestX. The partnership is a for-profit business organized under US tax laws. Partner W contributes an office building valued at $200,000. He bought it six years ago for $120,000 but had to pay recording fees, broker fees, and property taxes for an additional $35,000 at the time of purchase. Partner X decides to give InvestX some artwork for the office building that he purchased for $250,000 three years ago. The artwork is currently valued at $55,000 however, as last year the pieces were discovered to be fraudulent replicas rather than originals as previously thought. Partner Y doesn?t want to offer money or property but, as an attorney, agrees to write the operating documents for InvestX as well as numerous contracts and agreements the business needs to get started. The services he contributes are worth approximately $25,000. Partner Z is in the technology business decides to trade for his interest in InvestX by giving the partnership 28 PC desktop computers he has in his warehouse. The computers are two years old and worth about $30,000, but have a zero basis in his hands due to depreciation and amortization. Please answer the following questions worth 5 points each: 1. What is W?s basis in his partnership interest? What is the basis for InvestX? What is the realized gain or loss for both parties? 2. What is X?s basis in his partnership interest? What is the basis for InvestX? What is the realized gain or loss for both parties? 3. What is Y?s basis in his partnership interest? What is the basis for InvestX? What is the realized gain or loss for both parties? 4. What is Z?s basis in his partnership interest? What is the basis for InvestX? What is the realized gain or loss for both parties?What is Z?s basis in his partnership interest? What is the basis for InvestX? What is the realized gain or loss for both parties? 5. InvestX decides to open a subsidiary nearby its headquarters and donate all the artwork obtained from Partner X as a capital contribution. What are the tax consequences (realized and recognized gain or loss) for each party? (Points : 25),Can i know if you will do it or not, so i know what to do. Thank you.,Hi Michael, Just want to know if you are working on the problems and if i will have the solutions by the due time. Regards.,Please what does this mean "once it is accepted" - Explain. I wish to know if you will do it or not. How long will it take for you to notify me it it is accepted or not? Regards.
Question 2
I need an 8-10 pages in APA Format with citations and references, a Application Paper on the Corporation Ethics Scandal on Richard Whitney - 1938 who was the scion of a wealthy and socially elite family. His father was president of the North National Union Bank and his brother George Whitney, Jr., was a huge success at the Morgan Bank. Richard Whitney used these influential connections to the best advantage and he was named vice-president of the NYSE. After making losses, he began to borrow heavily. When the source of funds from relatives and friends dried up, he helped himself from the New York Stock Exchange Gratuity Fund. In addition to this, he also embezzled funds from other sources. His fraud was finally exposed by the comptroller for the NYSE and he was subsequently imprisoned. The paper should be in two parts. Part 1 - Facts of the Case and Part II - Civil Trial. Below is the information that is needed. The paper should concise of 2 relevant, scholarly and current (within last 5 years), the material on the Facts of Case and Civil Trial information includes evidence of critical analysis using research, experience and factual evidence; evidence of complex problem solving shown; extends knowledge base past a simple book/article review; effectively organizes content to create smooth transitions that build to conclusions. Conclusions and recommendation should be logical and reasonable; combines research and analysis to form new insights Part 1: Facts of the Case Describe the company before the scandal. Use some applicable financial metrics to show how the company was performing before the scandal. Enhance the background and understanding of what transpired in this case. Identify all individuals or firms who knew about, participated in, or condoned the behavior. Describe the company before the scandal. Use some applicable financial metrics to show how the company was performing before the scandal. Identify all individuals or firms who knew about, participated in, or condoned the behavior. How was the scandal uncovered and by whom? What did they do with the information they uncovered? How did the company and your subject react? Part Two: Civil Trial Research your subject?s civil trial. Who were the victims of your subject?s actions and how were they injured? What claims were brought by the plaintiffs against the defendant(s)? Did your subject enter into a settlement agreement or go to trial? If settlement, what was the final settlement, how much money did the plaintiffs receive, other agreements, etc.? If your subject went to trial, what was the outcome? Do you feel it was fair? Justify your position.,Thank U so Much!!
Question 3
MGT 325 Module 6 Spreadsheet Exam Part A COMPREHENSIVE CHAPTER 12 & 13 PROBLEMS MONARCH CORPORATION IS GOING TO START A NEW PRODUCT LINE OF PRODUCTS IN A WHOLE NEW MARKET. THE DATA FOR ANALYSIS IS PRESENTED BELOW: COST OF THE EQUIPMENT NEEDED$194,000FIVE YEAR PROPERTY FOR TAX DEPRECIATION NEW WORKING CAPITAL NEEDS$50,000WILL BE RECOVERED AT THE END OF THE THIRD YEAR PROJECTED NEW REVENUES: SALESPROBABILITY $200,00030% $250,00050% $300,00020% COST OF GOOD SOLD30%OF SALES VARIABLE CASH COSTS10%OF SALES ANNUAL FIXED CASH COSTS: RENT$50,000 CLEANING$20,000 MAINTENANCE & OTHER$10,000 TOTAL FIXED COSTS$80,000 EQUIPMENT DISPOSAL PROCEEDS$19,400SALVAGE VALUE AT THE END OF YEAR 6 FIRM'S COST OF CAPITAL12.00% TAX RATE35% NOTE - WHEN COMPUTING TAX, A NET LOSS FOR THE YEAR MEANS A POSITIVE TAX SAVINGS IS CREATED SINCE THERE IS OTHER INCOME TAX ON OTHER INCOME TO OFFSET. DEPRECIATION RATES FOR TAX PURPOSES: YEAR ONE20.00% YEAR TWO32.00% YEAR THREE19.20% YEAR FOUR11.50% YEAR FIVE11.50% YEAR SIX5.80% ASSUMPTIONS: ALL CASH FLOWS IN YEARS 1-6 OCCUR AT THE END OF THE YEAR. ALL INITIAL CASH INFLOWS OR OUTFLOWS OCCUR TODAY. REQUIRED: A. ASSUMING SALES ARE $200,000 COMPUTE THE PAYBACK, IRR AND NPV. FOR THE NPV, COMPUTE AT BOTH THE FIRM'S DISCOUNT RATE AND 16%, WHICH IS A 4% PREMIUM ADDED TO THE RATE. B. COPY THE WHOLE WORKSHEET AND SOLUTIONS FOR PART A TO THE WORKSHEET NAMED PART B, AND REDO THE COMPUTATIONS BY CHANGING THE ANNUAL SALES TO $250,000. C. COPY THE WHOLE WORKSHEET AND SOLUTIONS FOR PART A TO THE WORKSHEET NAMED PART C, AND REDO THE COMPUTATIONS BY CHANGING THE ANNUAL SALES TO $300,000. You should place your answers in each of the boxes shown below color-coded in Yellow color. PART A YEARS0123456 INITIAL INVESTMENT (NO INCOME TAX AFFECTS) COST OF THE EQUIPMENT NEEDED$ WORKING CAPITAL NEEDS TOTAL INITIAL INVESTMENT ANNUAL OPERATING RECEIPTS:(using the information given above, fill in the blanks below to determine each year's operating cash flow): SALES$$$$$$ LESS COST OF GOODS SOLD GROSS PROFIT LESS VARIABLE COSTS LESS FIXED COSTS LESS DEPRECIATION EXPENSE PROFIT (LOSS) BEFORE TAX LESS INCOME TAX EXPENSE (BENEFIT) PROFIT (LOSS) AFTER TAX PLUS DEPRECIATION EXPENSE TOTAL OPERATING CASH INFLOWS$$$$$$ SALVAGE VALUE ON EQUIPMENT:(figure out the salvage value of the equipment for tax purposes): PROCEEDS$ LESS TAX BASIS OF EQUIPMENT: COST ACCUMULATED DEPRECIATION TAX BASIS GAIN ON SALVAGE LESS INCOME TAX ON SALVAGE GAIN NET PROCEEDS ON SALVAGE AFTER TAXES$ RELEASE OF ORIGINAL WORKING CAPITAL NEEDS (NO TAX AFFECT)$ TOTAL CASH INFLOWS (OUTFLOWS) CUMULATIVE CASH INFLOWS (OUTFLOWS) THREE METHODS OF EVALUATION: PAYBACK PERIODYEARS (round to 2 decimal places). INTERNAL RATE OF RETURNAnswer is in %-2 decimal places please. NET PRESENT VALUE AT12.00%Answer is in $-round answer to nearest dollar. NET PRESENT VALUE AT16.00%Answer is in $-round answer to nearest dollar. Note: Pages 375-380 in your course textbook show you how to calculate the Payback Period, the Internal Rate of Return, and the NPV. This is a three part question a, b, and c.
Question 5
Sensitivity Analysis Consider a project to supply Detroit with 55,000 tons of machine screws annually for automobile production. You will need an initial $1,700,000 investment in threading equipment to get the project started; the project will last for five years. The accounting department estimates that annual fixed costs will be $520,000 and that variable costs should be $220 per ton; accounting will depreciate the initial fixed asset investment straight-line to zero over the five-year project life. It also estimates a salvage value of $300,000 after dismantling costs. The market-ing department estimates that the automakers will let the contract at a selling price of $245 per ton. The engineering department estimates you will need an initial net working capital investment of $600,000. You require a 13 percent return and face a marginal tax rate of 38 percent on this project. Suppose you are confident about your own projections, but you are a little unsure about Detroit's actual machine screw requirements. What is the sensitivity of the project OCF to changes in the quantity supplied? What about the sensitivity of net present value to changes in the quantity supplied? Given the sensitivity number you calculated, is there some minimum level of output below which you would't want to operate? Why?
