Mini, Inc., earns pretax book net income of $750,000 in 2014. Mini deducted $20,000 in bad debt expense for book purposes. This expense is not yet deductible for tax purposes. Mini records no other temporary or permanent differences. Assuming that the U.S. tax rate is 35%, compute Mini’s total income tax expense, current income tax expense, and deferred income tax expense.
> Using the legend provided, classify each of the following statements (more than one answer per statement may be appropriate). a. Decides only Federal tax matters. b. Decisions are reported in the F.3d Series. c. Decisions are reported in the USTCs. d. De
> Which of the following items may be found in the Internal Revenue Bulletin? a. Action on Decision. b. Small Cases Division of the Tax Court decision. c. Letter ruling. d. Revenue Procedure. e. Final Regulation. f. Court of Appeals decision. g. Acquiescen
> Can a Tax Court Small Cases decision be treated as a precedent by other taxpayers? Explain. Partial list of research aids:§ 7463(b). Maria Antionette Walton Mitchell, T.C. Summary Opinion 2004–160.
> What is meant by the term petitioner?
> Locate the following Code provisions, and give a brief description of each in an e-mail to your instructor. a. § 61(a)(13). b. § 643(a)(2). c. § 2503(g)(2)(A).
> Tom, an individual taxpayer, has been audited by the IRS and, as a result, has been assessed a substantial deficiency (which has not yet been paid) in additional income taxes. In preparing his defense, Tom advances the following possibilities. a. Althoug
> For her tax class, Yvonne is preparing a research paper discussing the tax aspects of child support payments. Explain to Yvonne how she can research the provisions on this topic.
> Answer the following questions based upon this citation: United Draperies, Inc.v. Comm., 340 F.2d 936 (CA–7, 1964), aff’g 41 T.C. 457 (1963), cert. denied 382U.S. 813 (1965). a. In which court did this decision first appear? b. Did the appellate court up
> Interpret each of the following citations. a. 14 T.C. 74 (1950). b. 592 F.2d 1251 (CA–5, 1979). c. 95–1 USTC { 50,104 (CA–6, 1995). d. 75 AFTR 2d 95–110 (CA–6, 1995). e. 223 F.Supp. 663 (W.D. Tex., 1963).
> Referring to the citation only, determine which tax law source issued these documents. a. 716 F.2d 693 (CA–9, 1983). b. 92 T.C 400 (1998). c. 70 U.S. 224 (1935). d. 3 B.T.A. 1042 (1926). e. T.C.Memo. 1957–169. f. 50 AFTR 2d 92–6000 (Cl.Ct., 1992). g. Ltr
> Explain the following abbreviations. a. CA-2, b. Fed.Cl. c. affd. d. reu'd. Cert. den ied. k. F3d. 1. FSupp. m. USSC. n. S.a. o. D.A. f. 8. acq. h. В.ТА. i USTC. j. AFTR e. rem 'd.
> What is the difference between a Regular decision, a Memorandum decision, and a Summary Opinion of the Tax Court?
> In assessing the validity of a prior court decision, discuss the significance of the following on the taxpayer’s issue. a. The decision was rendered by the U.S. District Court of Wyoming. Taxpayer lives in Wyoming. b. The decision was rendered by the Cou
> A taxpayer living in the following states would appeal a decision of the U.S District Court to which Court of Appeals? a. Wyoming. b. Nebraska. c. Idaho. d. Louisiana. e. Illinois.
> Locate the following Tax Court case: Thomas J. Green, Jr., 59 T.C. 456 (1972). Briefly describe the issue in the case, and explain what the Tax Court said about using IRS publications to support a research conclusion.
> Go to the U.S. Tax Court website. a. What different types of cases can be found on the site? b. What is a Summary Opinion? Find one. c. What is a Memorandum decision? Find one. d. Find the court’s Rules of Practice and Procedures. e. Is the site user-fri
> An accountant friend of yours tells you that he “almost never” does any tax research because he believes that “research usually reveals that some tax planning idea has already been thought up and shot down.” Besides, he points out, most tax returns are n
> Determine the missing data in these court decisions and rulings. a. Higgins v. Comm., 312 U.S.______ (1941). b. Talen v. U.S., 355 F.Supp.2d 22 (D.Ct. D.C., ______). c. Rev.Rul. 2008–18, 2008–13 I.R.B.______. d. Pahl v. Comm., 150 F.3d 1124 (CA–9, ______
> Butch Bishop operates a small international firm named Tile, Inc. A new treaty between the United States and Spain conflicts with a Section of the Internal Revenue Code. Butch asks you for advice. If he follows the treaty position, does he need to disclo
> What precedents must each of these courts follow? a. U.S. Tax Court. b. U.S. Court of Federal Claims. c. U.S. District Court.
> Using the title “The Federal Taxing System Operates Outside the U.S. Constitution,” write a two-page paper to submit in your Government Policy course. Do not address “tax protester” issues (e.g., that the income tax is unconstitutional or that one’s taxe
> Develop an outline from which you will deliver a 10-minute talk to the local Chamber of Commerce, with the title “Regulation of the Tax Profession in the 21st Century.” Use no more than four PowerPoint slides for your talk, and discuss what the business
> A friend of yours, who is a philosophy major, has overheard the conversation described in Problem 28 and declares that all tax research is “immoral.” She says that tax research enables people with substantial assets to shift the burden of financing publi
> Comment on these statements. a. The tax law is created and administered in the same way as other Federal provisions. b. Most taxpayers find it too expensive and time-consuming to sue the government in a tax dispute.
> What precedents must each of these courts follow? a. U.S. Tax Court. b. U.S. Court of Federal Claims. c. U.S. District Court.
> James Corporation believes that it will have a better distribution location for its product if it relocates the corporation to another state. What considerations (both tax and nontax) should James weigh before making a decision on whether to make the mov
> Jim, a resident of Washington (which imposes a general sales tax), goes to Oregon (which does not impose a general sales tax) to purchase his automobile. Will Jim successfully avoid the Washington sales tax? Explain.
> Distinguish between taxes that are proportional and those that are progressive.
> Describe the material that is found in Subtitle E of the Code. Would you expect these provisions not to be addressed anywhere else in the Code? Explain.
> In terms of Adam Smith’s canon of economy, how does the Federal income tax fare?
> Go to www.taxfoundation.org, and determine Tax Freedom Day for your state for 1950, 1960, 1970, 1980, 1990, 2000, and 2010. Report your results as a line graph.
> Contrast a value added tax (VAT) with a national sales tax in terms of anticipated taxpayer compliance.
> Discuss the probable justification for each of the following aspects of the tax law. a. A tax credit is allowed for amounts spent to furnish care for minor children while the parent works. b. Deductions for interest on home mortgage and property taxes o
> Discuss the probable justification for each of the following provisions of the tax law. a. A tax credit allowed for electricity produced from renewable sources. b. A tax credit allowed for the purchase of a motor vehicle that operates on alternative ener
> Franklin County is in dire financial straits and is considering a number of sources for additional revenue. Evaluate the following possibilities in terms of anticipated taxpayer compliance. a. A property tax on business inventories. b. A tax on intangibl
> Mauve Supplies, Inc., reports total income of $120,000. The corporation’s taxable income is $105,000. What are Mauve’s marginal, average, and effective tax rates?
> Ashley runs a small business in Boulder, Colorado, that makes snow skis. She expects the business to grow substantially over the next three years. Because she is concerned about product liability and is planning to take the company public in 2016, she is
> Marco and Cynthia have decided to go into business together. They will operate a burrito delivery business. They expect to have a loss in the first and second years of the business and subsequently expect to make a substantial profit. Marco and Cynthia a
> Several years ago, Ethan purchased the former parsonage of St. James Church to use as a personal residence. To date, Ethan has not received any ad valorem property tax bills from either the city or the county tax authorities. a. What is a reasonable expl
> Locate the following Regulations, and give a brief topical description of each. Summarize your comments in an e-mail to your instructor. a. Reg. § 1.170A–4A(b)(2)(ii)(C). b. Reg. § 1.672(b)–1. c. Reg. § 20.2031–7(f).
> Eileen, a resident of Wyoming, goes to Montana to purchase her new automobile. She does this because Wyoming imposes a sales tax while Montana does not. Has Eileen successfully avoided the Wyoming sales tax? Explain.
> The Irontown Independent School District wants to sell a parcel of unimproved land that it does not need. Its three best offers are as follows: from the State Department of Public Safety (DPS), $4.3 million; from Trinity Lutheran Church, $4.2 million; an
> Some tax rules can be justified on multiple grounds (e.g., economic or social). In this connection, comment on the possible justification for the rules governing the following. a. Pension plans. b. Education. c. Home ownership.
> When taxes are “too high,” taxpayers start to cheat on their taxes and dangerous consequences can result. Evaluate this statement. Give at least two examples to illustrate your conclusions.
> Prepare an outline for a 10-minute speech to give to your government class. The speech is titled “If You Don’t Pay Federal Taxes, You Can’t Vote.”
> “How I Would Apply Federal Income Tax Law to Encourage the Availability of Universal Broadband in This Community” to submit to your economics professor.
> Discuss with respect to the Federal policy for reducing poverty: a. The individual income tax. b. The Social Security tax.
> Using the facts of Problem 15, determine the 2015 end-of-year balance in Mini’s deferred tax asset and deferred tax liability balance sheet accounts.
> Using the facts of Problem 13, determine the 2014 end-of-year balance in Mini’s deferred tax asset and deferred tax liability balance sheet accounts.
> Define the terms temporary difference and permanent difference as they pertain to the financial reporting of income tax expenses. Describe how these two book-tax differences affect the gap between book and taxable income. How are permanent and temporary
> Parent, a domestic corporation, owns 100% of Block, a foreign corporation, and Chip, a domestic corporation. Parent also owns 45% of Trial, a domestic corporation. Parent receives no distributions from any of these corporations. Which of these entities’
> Parent, a domestic corporation, owns 100% of Block, a foreign corporation, and Chip, a domestic corporation. Parent also owns 45% of Trial, a domestic corporation. Parent receives no distributions from any of these corporations. Which of these entities’
> Locate the following Code provisions, and give a brief description of each in an e-mail to your instructor. a. § 61(a)(13). b. § 643(a)(2). c. § 2503(g)(2)(A).
> Locate the following items, and e-mail to your professor a brief summary of the results. a. Charles Y. Choi, T.C. Memo. 2002–183. b. Ltr.Rul. 200231003. c. Action on Decision, 2000–004, May 10, 2000.
> Locate the following Code provisions, and give a brief description of each in an e-mail to your instructor. a. § 61(a)(13). b. § 643(a)(2). c. § 2503(g)(2)(A).
> Locate the following Code provisions, and give a brief description of each in an e-mail to your instructor. a. § 61(a)(13). b. § 643(a)(2). c. § 2503(g)(2)(A).
> Locate the following Code provisions, and give a brief description of each in an e-mail to your instructor. a. § 61(a)(13). b. § 643(a)(2). c. § 2503(g)(2)(A).
> Locate the following Code provisions, and give a brief description of each in an e-mail to your instructor. a. § 61(a)(13). b. § 643(a)(2). c. § 2503(g)(2)(A).
> Locate the following Code provisions, and give a brief description of each in an e-mail to your instructor. a. § 61(a)(13). b. § 643(a)(2). c. § 2503(g)(2)(A).
> Locate the following Code provisions, and give a brief description of each in an e-mail to your instructor. a. § 61(a)(13). b. § 643(a)(2). c. § 2503(g)(2)(A).
> Locate the following Code provisions, and give a brief description of each in an e-mail to your instructor. a. § 61(a)(13). b. § 643(a)(2). c. § 2503(g)(2)(A).
> Locate the following Code provisions, and give a brief description of each in an e-mail to your instructor. a. § 61(a)(13). b. § 643(a)(2). c. § 2503(g)(2)(A).
> Locate the following Code provisions, and give a brief description of each in an e-mail to your instructor. a. § 61(a)(13). b. § 643(a)(2). c. § 2503(g)(2)(A).
> Locate the following Code provisions, and give a brief description of each in an e-mail to your instructor. a. § 61(a)(13). b. § 643(a)(2). c. § 2503(g)(2)(A).
> Find one instance of each of the following using a nonsubscription site on the Web or an online library at your school. In an e-mail to your professor, give a full citation for the document and describe how you found it. a. Letter Ruling. b. Action on De
> Locate the following Code provisions, and give a brief description of each in an e-mail to your instructor. a. § 61(a)(13). b. § 643(a)(2). c. § 2503(g)(2)(A).
> Locate the following Code provisions, and give a brief description of each in an e-mail to your instructor. a. § 61(a)(13). b. § 643(a)(2). c. § 2503(g)(2)(A).
> Locate the following Code provisions, and give a brief description of each in an e-mail to your instructor. a. § 61(a)(13). b. § 643(a)(2). c. § 2503(g)(2)(A).
> Locate the following Code provisions, and give a brief description of each in an e-mail to your instructor. a. § 61(a)(13). b. § 643(a)(2). c. § 2503(g)(2)(A).
> Locate the following Code provisions, and give a brief description of each in an e-mail to your instructor. a. § 61(a)(13). b. § 643(a)(2). c. § 2503(g)(2)(A).
> Locate the following Code provisions, and give a brief description of each in an e-mail to your instructor. a. § 61(a)(13). b. § 643(a)(2). c. § 2503(g)(2)(A).
> Locate the following Code provisions, and give a brief description of each in an e-mail to your instructor. a. § 61(a)(13). b. § 643(a)(2). c. § 2503(g)(2)(A).
> Locate the following Code provisions, and give a brief description of each in an e-mail to your instructor. a. § 61(a)(13). b. § 643(a)(2). c. § 2503(g)(2)(A).
> Locate the following Code provisions, and give a brief description of each in an e-mail to your instructor. a. § 61(a)(13). b. § 643(a)(2). c. § 2503(g)(2)(A).
> Go to the U.S. Tax Court website. a. What different types of cases can be found on the site? b. What is a Summary Opinion? Find one. c. What is a Memorandum decision? Find one. d. Find the court’s Rules of Practice and Procedures. e. Is the site user-fri
> Find three blogs related to tax practice. On one PowerPoint slide, list the URLs for each blog and the general topical areas addressed at each. Send your slide to the others in your course.
> Locate the following Code citations, and give a brief topical description of each. a. § 708(a). b. § 1371(a). c. § 2503(a).
> Refer to E4-18 Red River Company prepared the following trial balance at the end of its first year of operations ending December 31, 2011. To simplify the case, the amounts given are in thousands of dollars. Other data not yet recorded at December 31,
> Refer to E4-18. Red River Company prepared the following trial balance at the end of its first year of operations ending December 31, 2011. To simplify the case, the amounts given are in thousands of dollars. Other data not yet recorded at December 31
> Red River Company prepared the following trial balance at the end of its first year of operations ending December 31, 2011. To simplify the case, the amounts given are in thousands of dollars. Other data not yet recorded at December 31, 2011 include:
> Tyson, Inc., a party rental business, completed its first year of operations on December 31, 2011. Because this is the end of the annual accounting period, the company bookkeeper prepared the following tentative income statement: Income Statement, 2011
> On December 31, 2011, the bookkeeper for Grillo Company prepared the following income statement and balance sheet summarized here but neglected to consider three adjusting entries. Data on the three adjusting entries follow: a. Rent revenue of $2,500
> On December 31, 2011, Yates Company prepared an income statement and balance sheet and failed to take into account four adjusting entries. The income statement, prepared on this incorrect basis, reflected pretax income of $60,000. The balance sheet (befo
> Cohen & Boyd, Inc., publishers of movie and song trivia books, made the following errors in adjusting the accounts at year-end (December 31): a. Did not accrue $1,400 owed to the company by another company renting part of the building as a storage f
> Deere & Company is the world’s leading producer of agricultural equipment; a leading supplier of a broad range of industrial equipment for construction, forestry, and public works; a producer and marketer of a broad line of lawn and
> Note 1: On April 1, 2011, Warren Corporation received a $30,000, 10 percent note from a customer in settlement of a $30,000 open account receivable. According to the terms, the principal of the note and interest are payable at the end of 12 months. The a
> Foot Locker, Inc., is a large global retailer of athletic footwear and apparel selling directly to customers and through the Internet. It includes the Foot Locker family of stores, Champs Sports, and Eastbay. The following are several of Foot Locker’s in
> Kate’s Kite Company (a corporation) sells and repairs kites from manufacturers around the world. Its stores are located in rented space in malls and shopping centers. During its first month of operations ended April 30, 2011, Kateâ
> Terbish Company started operations on January 1, 2012. It is now December 31, 2012, the end of the annual accounting period. The part-time bookkeeper needs your help to analyze the following three transactions: a. During 2012, the company purchased offic
> The following accounts are used by Britt’s Knits, Inc. Required: For each of the following nine independent situations, give the journal entry by entering the appropriate code(s) and amount(s). The first transaction is used as an exam
> Refer to E4-7. Cardon’s Boat Yard, Inc., repairs, stores, and cleans boats for customers. It is completing the accounting process for the year just ended, November 30, 2012. The transactions during 2012 have been journalized and posted
> Refer to E4-6 . Dittman’s Variety Store is completing the accounting process for the year just ended, December 31, 2011. The transactions during 2011 have been journalized and posted. The following data with respect to adjusting entrie
> Cardon’s Boat Yard, Inc., repairs, stores, and cleans boats for customers. It is completing the accounting process for the year just ended, November 30, 2012. The transactions during 2012 have been journalized and posted. The following data with respect
> Dittman’s Variety Store is completing the accounting process for the year just ended, December 31, 2011. The transactions during 2011 have been journalized and posted. The following data with respect to adjusting entries are available: a. Wages earned by
> Refer to E4-3 and E4-4. Ramos Company completed its first year of operations on December 31, 2011. All of the 2011 entries have been recorded except for the following: a. At year-end, employees earned wages of $7,000, which will be paid on the next payr
> Aubrae Company is making adjusting entries for the year ended December 31, 2011. In developing information for the adjusting entries, the accountant learned the following: a. A two-year insurance premium of $3,600 was paid on October 1, 2011, for coverag
> Ramos Company completed its first year of operations on December 31, 2011. All of the 2011 entries have been recorded except for the following: a. At year-end, employees earned wages of $7,000, which will be paid on the next payroll date, January 6, 2012
> In its annual report, Hewlett-Packard Company states, “We are a leading global provider of products, technologies, solutions and services to individual consumers, small- and medium-sized businesses, and large enterprises, including cust
> Refer to E3-13 . Lisa Frees and Amelia Ellinger had been operating a catering business for several years. In March 2011, the partners were planning to expand by opening a retail sales shop and decided to form the business as a corporation called Traveli
> The following T-accounts indicate the effects of normal business transactions: Required: 1. Describe the typical investing and financing transactions that affect each T-account. That is, what economic events occur to make each of these accounts increa
