Does this not create more debt? Katsenelson’s article supports my thinking that the best thing for America would have been to step back and let the Big Three file bankruptcy. Katsenelson answered my question, What would have happened? Katsenelson stated, “While in bankruptcy, they (the Big Three) will be able to break contracts with unions that are choking them, lower their debt burdens by turning debt holders into equity holders. Their hands will be untied to right-size by shrinking their operations, cutting costs and becoming competitive again.”
The reason why my client failed to report income was because we disagree on disagree about the amount of tax revenue owed. Please find the enclosed copy of proof of all the statements above that supports my client and all of the documents that was provided from you all that states all of my clients owed and showed several different errors. Please accept my petition for abatement of penalties owed for reasonable cause. If you have any questions or need any more information, you can reach me at 840-555-3636 during business hours. Also, I have enclosed a payment that covers the amount of taxes that my client owes, less the penalty portion.
Therefore, creditworthiness is usually overemphasized in the decision to file for bankruptcy. When a business files for Chapter 7 bankruptcy, after a trustee is appointed, the trustee will sell the business’s assets and distribute the proceeds accordingly. In the event that a business declares bankruptcy, its employees may or may not lose their jobs because divisions of the business may be sold intact or
It is important to remember that financial statements must be presented fairly and in accordance with accounting principles as it is evident here that there is a bias towards presenting statements in a financially strong way. Another important user is the controller, Liam Hanlon who is a potential shareholder. As a potential shareholder, he may wish to present financial statements is such a way as to make it seem as if the company is not a very attractive investment to deter other potential investors and to be able to purchase shares at a lower price. Another slightly conflicting interest would be to prepare accurate
With regarding to bailout by several banks, Ms. Bair held different views from Geithner`s. She thought banks should spend much effort to make modification and restructuring of loans so that the public could benefit, rather than only bailout to self-help. Loan restructuring is "a time-tested tool used in the banking industry to minimize losses when a borrower runs into trouble". In Ms. Bair`s opinion, she not only considered about banks` profits, but also concerned about homeowners` interests. Finally, legislature passed the financial reform bill was passed, which would raised minimum reserve requirements in F.D.I.C.
It will help the management to judge reasons for losses and help to control it. It will discourage employees from committing frauds. Bankers can place reliance on audited financial statement while making decision about credit worthiness of loan applicants. Audited statements enhance the reliability of computations of income earned by entity, thus help in determining income tax. In addition, prospective investors, on the basis of past years audited financial statements, can device the expected profits trends for deciding whether to invest in the entity or
Planning your future business transactions can assist you in mitigating tax implications relating to your business as well as your personal lives. John has received the money from the settlement and there’s not much to do to mitigate the tax impact strictly on those earnings; but by using the funds to save for retirement, invest in the new building, purchase a new home, and even to help Jane start up her business will help decrease the overall impact as well as help you guys be better off business wise. The building and the equipment will become capital assets for each business and these can be depreciated over their useful life decreasing the burden on the businesses. Additionally any ordinary and necessary business expense can be used to offset their earnings and lower their tax liability even further. Hope all this information has helped you in some way, please let me know if you have additional questions or concerns.
The much more divisive question is whether the government should preserve the benefits that the companies provide to middle-class borrowers, including lower interest rates, lenient terms and the ability to get a mortgage even when banks are not making other kinds of loans. Douglas J. Elliott, a financial policy fellow at the Brookings Institution, said Congress was being forced for the first time in decades to grapple with the cost of subsidizing middle-class mortgages. The collapse of Fannie and Freddie took with it the pretense that the government could do so at no risk to taxpayers, he
The Act is designed to decrease any risks in the US financial system by overseeing Wall Street, regulating credit cards, loans, and mortgages. It stops banks from using the depositors’ money for its own profit, regulates any risky derivatives such as the credit default swaps, it brings hedge funds trades to light by registering with the SEC and giving the SEC all data about any trades made and portfolios. It created
does not have to accrue the liability because the exact amount of the liability cannot be reasonably estimated. The company has to make a note disclosure and state all the facts of the case and the high chance of losing the case because this lawsuit (and the possibility of 20more) is relevant to the future financial position of the company and thus the users of the financial statement should know about the situation. Part C - 5 Marks i.) Lower of cost and net realizable value method (LCNRV) is a method of inventory valuation in which the company reports its cost of goods sold as either the cost or the net realizable value depending on which is lower (in accordance with the relevance and prudence criteria of accounting). This is in order to ensure that their inventory and income statement are not overstated.