Case 09-4 NeedsSpace Background NeedsSpace has entered into a lease agreement with WeHaveIt to rent space for its corporate offices. The lease is classified as an operating lease. The lease entered between NeedsSpace and WeHaveIt has a 10 year lease term and there is no option to renew nor is the ability to negotiate for renewal provided in the lease agreement. Relevant Issue This case provides an opportunity to use accounting literature to account for the two obligations in the lease agreement. First the classification of the arrangement is an operating lease.
Employees must be vested to receive requirements and this plan will not integrate with any government benefits. Employees can start contributing to pension immediately upon hire in a permanent full time or part time position. For normal retirement and to receive full pensionable payment employees must be age 65 with a minimum of 15 years of service with the company. For early retirement, employees must have 10 years of service, and may retire at any age but benefits will be lowered by 20%. Maximum pensionable earnings shall be deemed equal to 70% of last full calendar year of service for the company.
Memo Date: 7/10/2013 Re: NeedsSpace Lease Provisions ________________________________________ NeedsSpace has entered into a lease agreement with WeHaveIt to rent space for its corporate offices. The lease is classified as an operating lease with a term of ten years and no option to renew. NeedsSpace has placed into service a few leasehold improvements such as temporary walls, HVAC, and carpeting. The leasehold improvements have economic useful lives of ten years. There are two provisions in the lease agreement NeedsSpace needs to be aware of: (1) “Lessor may require the lessee to perform general repairs and maintenance on the leased premises;” and (2) “Lessor may require the lessee to remove all leasehold improvements such that
Scale the deferred tax assets and liabilities by total sales or total assets. Question 22 4 out of 4 points Music, Inc., a domestic corporation, owns 100% of Vinyl, Ltd., a foreign corporation and Digital, Inc., a domestic corporation. Music also owns 12% of Record, Inc., a domestic corporation. Music receives no distributions from any of these corporations. Which of these entities' net income are included in Music's income statement for current year financial reporting
Exercise 4-25 January 2012 -- $5,000 December 2012 -- $4,000 $9,000 of rental income should be reported on the income tax return for 2012. The security deposit is excluded from the calculation. Exercise 4-32 a) Since the title of ownership was transferred to Barbara, she reports this on her tax return. The 1998 basis for the house, $400,000, is still the basis for the home. b) For Arnold, the $18,000 is tax deductible since the title of ownership was transferred to Barbara.
How must Mary Beth treat this loss on her 2011 tax return? Because the building counts as passive income she can report the loss as a passive loss. 34. Mike and Sally Card file a joint return for the 2011 tax year. Their adjusted gross income is $65,000
In Alexa's situation, all expenses incurred in this year is 28,900 while the passive income is only 20,000. Since we are not sure if Alex qualifies as an active participant at this point, none of the passive loss can be deducted again the passive income. 2. Assuming that Alexa's AGI from other sources is $90,000, what effect does the rental activity have on Alexa's AGI?Alexa makes all decisions with respect to the property. The AGI will be reduced by 8,900.
The size of the credit union does not matter, all credit union have a Board members that have the power to approve or denied any policy changes, refund fees to it members and increase or decrease of the interest rates. The board should implement its power wisely within guidelines of the business, while attending to its fiduciary responsibilities. In the past the Board members have used this power for their owned benefits. Two years ago the credit union was offering 2.50 percent on the savings accounts and 3.15 percent on the auto loans. The credit union was not making much of a profit.
• The hours of your business can be whatever you want them to be. • You are free to stay in the same location as long as you wish. (2) Jane Smith Tax Issues: (a) What are the different tax consequences between paying down the mortgage debt and assuming a new mortgage debt for federal income tax purposes? Applicable Law & Analysis: (Section 121 (a) “Gross income shall not include gain from the sale or exchange of property if, during the 5-year period ending on the date of the sale or exchange, such property has been owned and used by the taxpayer as the taxpayer’s principal residence for periods aggregating 2 years or more. (US Code, Section 121 (a); http://www.law.cornell.edu/uscode/text/26/121 Conclusion: There should be a little or no difference between paying an old mortgage and assuming a new one.
| List the various types of insurance a contractor must carry in order to comply with the contract. | | | | | | | | | | | | | | Question 8. | Who is responsible for obtaining the necessary permits required for performance of the work? | | | | | | | | | | | | | | Question 9. | Who is responsible for protecting existing Owner facilities during the performance of the work?