Jones should use Johnson's stock to acquire Smithon. This would be a stock for stock transaction. In the context of mergers and acquisitions, the exchange of an acquiring company's stock for the stock of the acquired company at a predetermined rate. Here, in this acquisition Shareholder's of corporation give up their stock solely in exchange for the voting stock acquiring corporation or its parent. The acquiring company's basis in the stock of the acquired company is equal to the basis that the shareholder's had in their stock.
A sole proprietorship business can also deduct business expenses just like any other business. The disadvantage is you will be taxed on total profits of the business which includes all income also. • Longevity/Continuity- The longevity of a sole proprietorship business is the life span of its owner unless the owner sells or hands down the business to a relative. • Control- The owner of the sole proprietorship business has complete control over every decision of the business. The disadvantage of this would be the lack of additional input from other shareholders could help in expanding or continuing the business.
Leah Earp 1. Ronderos should win the lawsuit because the property was rightfully Schock’s already and Ronderos is not a merchant therefore the risk of loss is Schock’s. 6. The dealer cannot reclaim the automobile because the buy was a good faith purchaser and the dealer can only make a lawsuit against B. 10.
If the IRR is less than the WACC, the project should be rejected, as it impoverishes the firm’s owners. If the IRR equals the WACC, it earns only normal profits (i.e., the owners’ opportunity costs) and accepting it is a matter of indifference. In this care the project’s IRR is 18.031 > 11.88%, therefore the IRR rule tells us the same as the NPV rule: this project will enrich the firm’s owners. We note in passing that in more advanced courses in finance you would learn about projects for which this rule cannot be used. Broadly speaking, they are projects whose cash flows changes sign more than once—e.g., from negative to positive to negative again.
A flat tax employs territorial taxation, which is when the government only taxes income that is generated within national borders (Meehan). In the global economy, taxes remain a critical component of business; countries with low-taxes benefit from jobs and capital (Meehan). A good tax policy is important to generate revenue for business and also because the penalty for a poorly received tax system on a global scale may be substantial and long-term (Meehan). The flat tax eliminates
The vendor will be function in effort to make a profit as is with all businesses. The problems can come when the vendor needs to increase profit and since the contracts are normally a fixed price, the only way for them to do so is to decrease expenses. This is a viable option as long as they meet the conditions specified in the contract (Bucki, 2012). When outsourcing to another company, your organization is now tied to the financial well-being of the vendor. The problem can arise when after contracting out the IT functions of the organization and paying the fees negotiated, the vendor goes bankrupt leaving the companies who have contracted to them without an IT resource (Bucki,
b) For Arnold, the $18,000 is tax deductible since the title of ownership was transferred to Barbara. c) For Arnold, the $18,000 (6 x $3,000) are tax deductible since alimony payments will cease upon the death of the spouse. The alimony payments should be listed on Barbara’s return. The child support payments made by Arnold would not be deductible and they would not be taxable for Barbara. Exercise 5-26 The bonds for the industrial development of mass transit would be a better investment for the investor.
The parole evidence rule requires, in the absence of fraud, duress, mutual mistake, or something of the kind the exclusion of all prior or contemporaneous oral or written evidence that would add to or vary the parties’ integrated written contract.”(Mallor, 2013, Pp448-451). Therefore, paying the taxes by the seller would be considered as if it “supplement, change, or contradict the terms of the written contract”. The contract also contained a clause requiring any modifications of the contract to be in writing, and Dyer failed to include the salesperson’s promise in writing. The court ruled the case in favor of Walt Bennett Ford. http://ar.findacase.com/research/wfrmDocViewer.aspx/xq/fac.19820414_0043514.AR.htm/qx Mallor, Barnes, Bowers, & Langvardt (2013).
As of June 28 2012 the Supreme Court ruled that basically if a person doesn’t buy health insurance then the fee is counted as a tax. The Obama administration tried to argue against the ruling stating that the fee should just count as a penalty instead of a tax. The Supreme Court didn’t agree with the Obama Administration so they turned the decision down. Chief Justice John Roberts believes that the payment of health insurance is not that high so it should be no choice but to get it. Also the payments are collected by the IRS through taxation.
Critics of an open border policy are concerned that health and welfare benefits would be taken advantage of by the economic migrants (Wellman 1.3). An easy solution to this problem would be to deny the newcomers these benefits until they have paid their dues through time, loyalty, and taxes. I agree with Wellman's solution of having a condition that says benefits may only be allowed for distribution once a person has lived, worked, and paid taxes for a certain number of years. To deny economic migrants benefits altogether would be unethical since they would be paying into the system, however it does not seem unreasonable to require that they earn the right to seek these benefits over time. As it is, we currently provide certain privileges to illegal immigrants through free public education for their children (due to the No Child Left Behind Act), so it makes more sense to allow the hiring of economic migrants who would be contributing government funding rather than allow the problem of illegal immigration to grow and thus continue spending money on people who make less contributions back to