For nearly a century‚ Windes Accountancy Corporation‚ the largest and oldest accounting firm in Long Beach‚ has provided financial advising‚ management and consulting services for corporate and individual consumers. Managing Partner John DiCarlo discusses what sets the firm apart in offering top-notch services and solutions for today’s clients. By Daniel Coats‚ California Business Journal As John DiCarlo looks out the 22nd story windows of his firm’s Long Beach headquarters‚ he can see many of
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Tanja Kirn D T j Ki Chair for Tax Management and the Laws of International and Liechtenstein Taxation Institute for Financial Services University of Liechtenstein‚ Vaduz The Economics of Taxation Taxation and Business Valuation: FTE approach Exercise Suppose Lucent Technologies has an equity cost of capital of 10%‚ market capitalization of $10.8 billion‚ and an enterprise value of $14.4 billion. Suppose p $ ‚ p $ pp Lucent’s debt cost of capital is 6.1% and its marginal tax rate is 35%. a. What is Lucent’s WACC
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determined by adding the spread to Treasury of A+ to the rate of 30-year treasury bonds in 2007. That is‚ 4.98%+1.62%=6.60%‚ which is the cost of debt . Third‚ the cost of equity is next. The EMRP (5%) was taken out of the context of the case. The tax rate (39.73%) was from the average of amount of taxes paid between year 2004 to year 2006. We also need to calculate the unlevered beta through the formula‚ βu=(E/E+D)*βe+(D/E+D)*βd. βd=0 Because we cannot find the
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year‚ no temporary differences existed. Required: 1. Assuming a tax rate of 35%‚ what will be Alvis’s net income? 2. What will Alvis report in the balance sheet pertaining to income taxes? Solution: Requirement 1 Since taxable income is less than pretax accounting income‚ a future taxable amount will occur when the temporary difference reverses. This means a deferred tax liability should be recorded to reflect the future tax consequences of the temporary difference. -------------------------------------------------
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250 $15‚300 Marginal tax rate .30 .30 .30 Tax $2‚730 $3‚075 $4‚590 Revenue $13‚000 $16‚250 $23‚400 Expenses (4‚250) (8‚000) (8‚100) Tax cost (2‚730) (3‚075) (4‚590) Net cash flow $6‚020 $5‚175 $10‚710 Discount factor (6%) .943 .890 Present value $6‚020 $4‚880 $9‚532 NPV $20‚432 11. a. Year 0 Year 1 Year 2 Year 3 Year 4 Before-tax cash flow $(500‚000) $52‚500 $47‚500 $35‚500 $530‚500 Tax cost (7‚875) (7‚125) (5‚325) (4‚575) After-tax cash flow 44‚625 40
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cannot claim additional exemptions because her husband is the proper claimant of the additional exemptions unless the husband waives his right or has no income taxable in the Philippines.. [Sec. 79(F)‚ NIRC] Problem 14 – 5 Note: Since the requirement is tax savings‚ if is to be
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TRENDS OF PROPERTY TAX IN MALAYSIA WHAT IS PROPERT TAX : Property or Assessment Tax is levied on all property holdings‚ including shops‚ factories‚ residential‚ agricultural and others‚ situated in the areas under the jurisdiction of local authorities. HISTORY OF PROPERTY TAX The history of property tax is begun at United States of America. Taxes based on ownership of property were used in ancient times‚ but the modern tax has roots in feudal obligations owned to British and European kings
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|(2-6) Statement of Retained Earnings | | | | | |In its most recent financial statements‚ Newhouse Inc. reported $50 million of net income and $810 million of retained earnings. The previous retained earnings | | |were $780 million. How much in dividends was paid to shareholders during the year? (Brigham 79)
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How Firms Avoid Losses: Evidence of Use of the Net Deferred Tax Asset Account David Burgstahler* University of Washington Gerhard G. Mueller Endowed Professor in Accounting W. Brooke Elliott University of Washington Michelle Hanlon University of Michigan Business School November 26‚ 2002 _________________________________________________________________________________ ABSTRACT: This paper investigates whether firms use discretion in accounting for deferred taxes to increase earnings
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on the tax return exceeded depreciation reported on the income statement by 120‚000. This difference will reverse in equal amounts of 30‚000 over the years 2011-2014. B. Interest received on municipal bonds was 10‚000. C. Rent collected in advance on Jan 1 2010 totaled 60‚000 for a 3 year period. Of this amount 40‚000 was reported as unearned at Dec 31 for book purposes. D. The tax rates are 40% for 2010 and 35% for 2011 and subsequent years. E. Income taxes of 320‚000 are due per the tax return
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