QUESTIONS: (2-3) Little Books Inc. recently reported $3m of net income. Its EBIT was $6m‚ and its tax was 40%. What was its interest expense? ANSWER: Net Income $3 Million EBIT $6 Million Divided by 0.6 Less IBT $5 Million Income before Taxes $5 Million Interest Expense $1 Million **Interest Expense = $1M** (2-7) The Talley Corporation had a taxable income of $365‚000 from operations after all operating costs but before (1) interest charges
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complicated tax system in the United States‚ although everyone is affected by it daily. Whether it is taxes on income‚ housing‚ or sales‚ taxes are extremely prominent in our society and as the people being taxed we have a responsibility to understand the basic tax laws in the United States. Throughout this week in POLS 2302 I have learned about the tax system including how to advise others about tax brackets‚ marginal taxes‚ different types of taxes‚ and government involvement in the American tax system
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Nearly all tax structures contain two basic parts: the tax base and the tax rate. The tax base is the amount to which the tax rate is applied to determine the tax due. The tax rate is basically a percentage rate applied to the tax base‚ and it can be progressive‚ regressive‚ or proportional. Progressive taxation refers to a tax that takes a larger percentage from the income of high-income people than it does from low-income people. And this is a basic principle underlying the income tax laws of
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BUSINESS/TAX RESEARCH ASSIGNMENT 1. For the Tax year 2004‚ is SK eligible to switch from the accrual to cash method of accounting under Rev. Proc. 2001-10? This revenue procedure applies to taxpayer with "average annual gross receipts" of $1‚000‚000 or less. Since SK ’s average annual gross receipt is greater than 1‚000‚000 for 2004 therefore SK is not eligible to switch from the accrual to cash method of accounting. ( Rev. Proc. 2001-10‚2001-1 CB 272) 2. For the tax year 2004‚ is SK eligible
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large jury verdict on behalf of his client in a personal injury case. His wife Jane Smith accompanies him during your meeting because she has some additional tax planning advice to ask of you. ROLE: After reviewing John and Jane Smith’s points of view‚ it will be your turn as a tax professional to decide on the best course of action from a tax perspective on their issues. Prepare a three page memo (at least 900-1‚500 words per page) to John and Jane Smith addressing the issues presented. PLAYERS:
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Income Tax 2 7-36: Lee Xanders Route 1‚ Box 2440 Mason‚ OH 45040 Dear Ms. Xanders As you are interested in the reorganization of Drab and Olive‚ please find the following information regarding three different types of consolidation‚ or reorganization; a “Type A” consolidation‚ a “Type C” or an acquisitive “Type D” reorganization. The advantages of a “Type A” consolidation include that consideration need not include voting stock. Up to 60% of consideration can be cash and property without tax consequences
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TERM PAPER ON TAX COMPARISON BETWEEN INDIA & CHINA IN PARTIAL FULFILMENT OF THE COURSE IBLT BY RAVI JAIN MBA (IB) GSIB‚ GITAM UNIVERSITY TO Prof. R.ANITA RAO Date: Visakhapatnam INTRODUCTION India has emerged as a trading superpower and as an increasing magnet for FDI. Its role in the international economy to this point has been less remarked than
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Paper Presentation on [REPUBLIC ACT NO. 10351] AN ACT RESTRUCTURING THE EXCISE TAX ON ALCOHOL AND TOBACCO PRODUCTS BY AMENDING SECTIONS 141‚ 142‚ 143‚ 144‚ 145‚ 8‚ 131 AND 288 OF REPUBLIC ACT NO. 8424. OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE CODE OF 1997‚ AS AMENDED BY REPUBLIC ACT NO. 9334‚ AND FOR OTHER PURPOSES Commonly known as SIN TAX REFORM ACT OF 2012 “Stick to One” OVERVIEW Sin Tax is a tax levied on products or activities‚ which are considered sinful or harmful and considered
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Introduction: For many Business students their main goal is to one day own and run their own businesses. During this assignment I would like to break down the initial steps needed to start a business. Starting a business involves planning‚ making key financial decisions and completing a series of legal activities. Below are the steps that could help you plan‚ prepare and manage your business. Items needed You will need to have: • Business plan • Location or place of purchase via
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Week 5 : C Corporations Concluded - Homework ES Page 1 1. (TCO E) For federal tax purposes‚ royalty income that is not derived in the ordinary course of a business is classified as: (Points : 5) portfolio income. answer active income. passive income. None of the above 2. (TCO F) When comparing corporate and individual taxation‚ the following statement is true: (Points : 5) Unlike individual taxpayer‚ corporate may not have a long-term capital loss carryforward
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