POST ACC525 All Units Discussions Latest 2019 July Question # 00602769 Course Code : ACC525 Subject: Business Due on: 07/06/2019 Posted On: 07/06/2019 05:45 AM Tutorials: 1 Rating: 4.8/5

ACC525 Advanced Topics in Taxes

Unit 1 Discussion

Using the
text, the readings and other exercises, as well as any additional research
done, discuss here what some of your learnings and insights are regarding the
revenue and expenditure issues. Also share what you think some of the
challenges might be when it comes to these issues/topics.

Do you
believe that a progressive, proportional, or regressive tax is the most
fair? Explain your answer.

Last year
your client Barney Brown, worked part-time for Timely Tax Services. Barney was promised an hourly wage plus
commission. He worked under this
arrangement from early February until April 15th. His accrued pay amounted to $900 plus $120
commissions. When he went to collect his
pay, however, he found only a vacant office with a sign on the door reading
“Nothing is sure but death and taxes.”

Can Barney
take a bad debt deduction for the wages and commission he was unable to
collect?

Consider
any ethical issues that may arise. Cite proper IRS regulation(s) to support
your point of view. Review rubric for discussion requirements.

ACC525 Advanced Topics in Taxes

Unit 2 Discussion

Using the
text, the readings and other exercises, as well as any additional research
done, discuss here what some of your learnings and insights are regarding the
revenue and expenditure issues. Also share what you think some of the
challenges might be when it comes to these issues/topics.

Discuss why
corporations frequently offer both qualified and nonqualified retirement plans
to their employees.

Palace
Company (an accrual-basis taxpayer) is writing the lease agreement for its new
apartment complex, Palace Apartments, which will rent for a minimum of $2,000
per month. Palace wants tenants to pay
$6,000 when they sign the lease and is considering two alternatives. Under the first alternative, $4,000 would be
rent for the final two months of the lease, with $2,000 for the damage
deposit. Under the second alternative,
$2,000 would be for the last month’s rent and $4,000 would be for the damage
deposit.

Discuss the
tax implication of each alternative and recommend one.

Consider
any ethical issues that may arise. Cite
proper IRS regulation(s) to support your point of view. Review rubric for discussion requirements.

ACC525 Advanced Topics in Taxes

Unit 3 Discussion

Using the
text, the readings and other exercises, as well as any additional research
done, discuss here what some of your learnings and insights are regarding the
revenue and expenditure issues. Also share what you think some of the
challenges might be when it comes to these issues/topics.

What are
the characteristics of a qualified trade or business? What records can the IRS require from a
taxpayer to substantiate a qualified trade or business deduction?

Ken, owner
of Kendrick Corporation, realizes that he needs to send an employee to a
temporary assignment at a plant in another state. He can either send one employee for an
18-month assignment or two employees for 9-month assignments. Kendrick Corporation will pay for all the
meal and lodging expenses while the employees are on their out-of-town
assignments.

Does it
make any difference from a tax perspective to Kendrick and to the employees
which option Ken chooses?

Consider
any ethical issues that may arise. Cite
proper IRS regulation(s) to support your point of view. Review rubric for discussion requirements.

ACC525 Advanced Topics in Taxes

Unit 4 Discussion

Using the
text, the readings and other exercises, as well as any additional research
done, discuss here what some of your learnings and insights are regarding the
revenue and expenditure issues. Also share what you think some of the
challenges might be when it comes to these issues/topics.

Explain the
difference between a realized gain and a recognized gain. How is the amount realized on a sale or
exchange determined? Provide an example.

Juan owns
40% and Mario owns 60% of Crispy Donuts, Inc. (CDI). Juan wants to buy out Mario’s interest in
CDI, so he arranges a stock sale agreement under which CDI will redeem
(purchase) all of Mario’s shares for $900,000.
This will then make Juan the sole shareholder of CDI. Juan wants to ensure that Mario does not open
a competing donut business nearby so he also has a covenant-not-to-compete
drawn up at the same time as the stock sale agreement.

Under the
terms of the covenant-not-to-compete, Mario cannot open another donut business
within a 10 mile radius for a period of five years. During this 60 month period, CDI will pay
Mario $9,000 per month in return for his agreement not to compete. CDI wants to know over what time period it
should amortize the covenant-not-to-compete.

Consider
any ethical issues that may arise. Cite
proper IRS regulation(s) to support your point of view. Review rubric for discussion requirements.

ACC525 Advanced Topics in Taxes

Unit 5 Discussion

Using the
text, the readings and other exercises, as well as any additional research
done, discuss here what some of your learnings and insights are regarding the
revenue and expenditure issues. Also share what you think some of the
challenges might be when it comes to these issues/topics.

What types
of realty qualify for like-kind exchange treatment? What kinds of personalty qualify for
like-kind exchange treatment? Give some
specific examples.

The Glades
Corporation has located a building that it would like to have for its new
warehouse. The corporation has contacted
the owner about making a trade for its existing property. The owner of the desired property is only
willing to sell the building for cash as he will have little gain on the sale
and has no use for the Glades property.
Glades, however, has an extremely low basis in its property and is
unwilling to sell it in order purchase the new property. Is there an alternative that will satisfy
Glades and the owner of the warehouse property?

Consider
any ethical issues that may arise. Cite
proper IRS regulation(s) to support your point of view. Review rubric for discussion requirements.

ACC525 Advanced Topics in Taxes

Unit 6 Discussion

Using the
text, the readings and other exercises, as well as any additional research
done, discuss here what some of your learnings and insights are regarding the
revenue and expenditure issues. Also share what you think some of the
challenges might be when it comes to these issues/topics.

List three
items that increase book income and three items that reduce book income when
reconciling book to taxable income. Why
do you think it is appropriate for these items to be “book/tax”
adjustments? Explain.

One of
Corbett Corporation’s shareholders, Gene, is having severe financial problems
due to extensive medical expenses. He
has approached the company for a loan, but the other shareholders on the board
of directors refuse to approve it. Gene
owns 25 percent of the corporate stock with a basis of $100,00 and his brother
owns 10 percent of the stock. Gene is not
related to any of the other shareholders.
One percent of the stock is worth $10,000. Gene needs $100,000 to pay off his current
medical bills. The corporation has
$100,000 in its accumulated earnings and profits account.

What
alternatives can you suggest to Gene and the corporation that would provide
Gene the money he needs while minimizing taxes?

Consider
any ethical issues that may arise. Cite proper IRS regulation(s) to support
your point of view. Review the rubric for discussion requirements.

ACC525 Advanced Topics in Taxes

Unit 7 Discussion

Using the
text, the readings and other exercises, as well as any additional research
done, discuss here what some of your learnings and insights are regarding the
revenue and expenditure issues. Also share what you think some of the
challenges might be when it comes to these issues/topics.

Cynthia
needs your advice regarding which form of business entity to choose for her new
business. She expects the new business
will have losses of approximately $80,000 in each of the first two years but
anticipates profits that will grow steadily thereafter. Cynthia has no cash to contribute to the
business but plans to work 50 or more hours per week managing the day-to-day
operations of the new business. Four
individuals will contribute $50,000 each to start the businesss. To fund growth, Cynthia anticipates that
additional funding will be needed in three years. Cynthia wants to meet with you next week to
discuss your analysis and preliminary recommendations

Based on
this information only, what would you recommend?

Before
meeting with Cynthia, what questions would you ask her to obtain additional
information ao you could conduct a more thorough analysis?

Consider
any ethical issues that may arise. Cite proper IRS regulation(s) to support
your point of view. Review the rubric for discussion requirements.

ACC525 Advanced Topics in Taxes

Unit 8 Discussion

Using the
text, the readings and other exercises, as well as any additional research
done, discuss here what some of your learnings and insights are regarding the
revenue and expenditure issues. Also share what you think some of the
challenges might be when it comes to these issues/topics.

What is the
difference between a tax credit and a tax deduction? Give examples of each. When would it be advantageous to a taxpayer
to have one or the other or both?
Explain.

Samantha is
a single parent providing the sole support for her six-year-old daughter,
Hillary. They live in an area of Anytown
where the public school is known to have problems with drugs and other
crimes. Samantha wants to send Hillary
to a private school to avoid these problems and provide a better environment
for Hillary’s educational development.
Eight years ago, Samantha set up two trusts to manage the securities she
inherited from her grandfather. Samantha is the sole beneficiary of Trust A
from which she receives bimonthly distributions each made after approval by the
trustee. Hillary is the sole-beneficiary
of Trust B and all distributions from this trust must be approved by its
trustee. If Samantha convinces the
trustee to pay for Hillary’s tuition, writing a check out of Trust B funds to
the school, are there any income tax consequences to Samantha?

Consider
any ethical issues that may arise. Cite proper IRS regulation(s) to support
your point of view. Review the rubric for discussion requirements.