Can MegaCorp, Inc. deduct the loss as ordinary and necessary under IRC 162? Short Answer IRC 162 provides the general rule for determining deductibility of trade or business expenses as ordinary and necessary. This is the standard claim for support of deductibility, but there is no provision in this Code section for deducting items that are capital in nature, which is the IRS contention under IRC 263. The statute is silent as to litigation settlements paid as a result of corporate acquisitions. IRC 263 provides the general rule that no deduction shall be allowed for items that are capital in nature.
There was an email identifying that terms of the deal but it would not be considered a contract because there was no signatures and it was not identified as an actual contract. The Big Time Toy Maker then asked for Chou to send him a draft of the contract, which would indicate that no formal contract was in place. Does the fact that the parties were communicating by email have impact on you analysis? The fact that both parties were communicating via email does not impact my analysis. The email communication did not serve as a written contract.
An auditor only looks at financial statements during a review without digging deeper to find any material misstatements or potential fraud, there is no review of the company’s internal controls, also the auditor does not look at any files that backup the financial statements they are given. In this case, the owner of the company hindered the auditor’s from doing their due diligence because he did not want his fraud discovered. 2. According to AU 326 of the Public Company Accounting Oversight Board, information from outside sources should be reliable. There should have been many substantive tests performed, objectives set forth, due diligence for true existence or occurrence of any files or contracts.
The carrying value is $1,100 whci is greater than the claue in use which is $900. The fair market value less costs to sell is $800. The impairment is found by subtracting the carrying amount by the value in use which comes out to $200,000, which should be recognized as an impairment under the IFRS. 2. In GAAP is mandatory if a building’s book value is gretater than the undiscounted sum of assets future cash flow.
a. Sales exceeded the budget by 10.7% ($75,000 ÷ $700,000), while cost of merchandise increased by 22.9% and salaries increased by only 11.4%. Thus, the investigation should focus on cost of merchandise since a 22.9% increase is disproportionate to the increase in sales. b. Electricity would not be a controllable cost for the manager of sporting goods, and it is doubtful that including it on a performance report for sporting goods would be
The federal district court in northern Indiana ruled that the price quotations were not offers. “Price quotations are a daily part of commerce by which products are shopped and commercial transactions initiated. Without more, they amount to an invitation to enter into negotiations, but generally they are not offers that can be accepted to form binding contracts ("Q.c. onics, ventures,," ) In this case, “the parties' conduct and the surrounding facts and circumstances do not suggest that the parties considered the price quotations as offers ("Q.c. onics, ventures,," ).” The price quotations did not include important terms other than pricing.
Ensure you state where a particular assumption is used in your proof. (600 points) [pic] Given the two IC Curves, Point A on IC1 is northeast of IC2’s Point B implying that IC1 is has a higher utility than IC2. On IC2, Point D is northeast to IC1’s Point C implying that IC2 is the IC curve with the higher utility, which creates a logical inconsistency. This would break the assumption rule that every consumption basket lies on one and only one indifference curve. It would also break the transitivity assumption.
Furthermore, Company X analyzed and prepared forecasts indicating that recovery could be expected by April 2011. From the information provided, it appears that they were not aware of the pending changes that were later announced by Company B. These factors indicate that in fact, Company X’s securities classified as available for sale are not other than temporary and do not need to be written down on the December 31, 2010 financial statements. However, I would note that if Company X had any indication as of December 31, 2010 that Company B would be making organizational changes, then it would then be necessary for them to report the securities which were classified as available for sale as other than temporary and respectively write them down on the balance sheets of the
Required: * Complete Alvin's Music Inc.'s (AMI) 2013 Form 1120, Schedule D, and Schedule G (if applicable) using the information provided below. * Neither Form 4562 for depreciation nor Form 4797 for the sale of the equipment is required. Include the amount of tax depreciation and the tax gain on the equipment sale given in the problem (or determined from information given in the problem) on the appropriate lines on the first page of Form 1120. Page C-14 * Assume that AMI does not owe any alternative minimum tax. * If any information is missing, use reasonable assumptions to fill in the gaps.
However, he refused to refund Penny‟s money and pointed to a sign in the store which stated: WE EXCHANGE BUT DO NOT GIVE REFUNDS. In relation to this scenario, answer the following questions: 1. Does the advertisement of the shoes “Made in Italy‟ of „the very finest quality Italian leather‟ and the no refunds sign breach the Australian Consumer Law. Explain. 2.