The commonly referenced Bail out proposal is in effect an emergency economic stabilization act aimed towards purchasing distressed assets ( most of which being mortgage back securities) and to help make monetary injections into various highly inlfuencial US banks. The banks in question are by and large mostly U.S. or foreign banks who's intricate investment into the US economy was deemed crucial enough to warrant the relief. The original proposal was three pages, the purpose of the plan was to purchase bad assets, reduce uncertainty regarding the worth of the remaining assets, and restore confidence in the credit markets. The first draft amendment was rejected through a vote of the House of Representatives on September 29, 2008, by a margin of 228-205, with this defeat government
November 13, 2011 TAX FILE MEMORANDUM FROM Annon SUBJECT MegaCorp, Inc. and Business Expense Today I spoke with our client, Peaceful MegaCorp, Inc. regarding their recent audit notice from the IRS. They want to know if the IRS is correct when they told MegaCorp, Inc. that they couldn't characterize the $5 million payment to Ideas, Inc. as necessary business expense. Instead, they need to characterize it as a capital expenditure, so they won't be able to deduct this payment. FACTS MegaCorp, Inc. purchased a company called Little, Inc. including all their assets and liabilities. Prior to the purchase, Little was involved in a patent infringement with Ideas, Inc. MegaCorp, Inc. agreed to pay $5 million in damages, and deduct it as necessary business expense.
In 2004, delays and stoppages to the firm’s production due to the collapse of equipment cost Alliance $2.6 million in repairs and a two-week shutdown. Alliance’s obligation to pay a divide payment of $3 million to National Industrial Supplies, and their previous $4 million annual loan repayment to their bank cripple the firm’s ability to finance expenditures. The firm is facing a difficult decision with choosing between postponing capital improvements, renegotiating debt obligations, or reducing dividend payments to National. Capital improvements will potentially save the firm money in costs for repairs, production delays, and plant shutdowns. Moreover, Alliance’s customers are sensitive to delivery times.
4 points A more recent issue that is causing major problems in the business community is Answer a. the privatization of ownership. b. short-term versus long-term financial goals of management. c. ethical problems d. environmental concerns. Corporate ethics policies typically apply to ________ in dealing with ________. Answer a. employee actions; customers and creditors b. employee actions; customers, vendors, and regulators c. management actions; all corporate constituents d. employee actions; all corporate constituents On its 2010 balance sheet, Barngrover Books showed $510 million of retained earnings, and exactly that same amount was shown the following year.
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
Capitalization ratios evaluate the financial leverage of a company. The ratios compare the funds using from short and long-term to funds obtained from shareholders. A high ratio of debt to capital increase interest expense and in worst scenarios it puts the company at risk when there are fluctuations in sales volume and cash flow. Objective The objective of this report is to evaluate the financial performance of Eaton Corporation for the three year period 2009, 2010 and 2011. And compare with the industry and its competitors average.
A profitable firm acquires a firm with large accumulated tax losses that my be carried forward. c. Attempts to stabilize earnings by diversifying. d. Purchase of assets below their replacement costs. e. Reduction in competition resulting from mergers. 2.
Recently, the market is on an uptake with its improving stocks & bonds. The light in a year-plus-long tunnel is bringing both hope and realization. The market improvement is also shedding a truth on a troubling facet of the economy, the 401(K). The realization Stephen Gandel, of “Time Magazine”, has highlighted in his article “Why It’s Time to Retire the 401(k)” focuses on the sad truth that 401(K) is not effective and thus can not be relied on. 401(K) has become ineffective because of the corruption of big business, the misunderstanding of and as a result a mishandling of the 401(K) accounts, and its correlating dependency on the market’s success.
Jane Smith tax issues: Issue a) What are the different tax consequences between paying down the mortgage (debt) and assuming a new mortgage (debt) for federal income tax purposes? If John and Jane decide to pay off their mortgage and then selling the property they would have a larger gain than if they just sold the house and purchased another one after the sale of their current home. Since that money would then be used to pay off the current mortgage and then focus on paying the second home they would be taxed differently. Since the value of their home along with how much equity they have in it will affect how large their recognizable gain is they should consider that before making any decisions. (3) Issue b) Can John and Jane Smith utilize a 1031 tax exchange to buy a more expensive house using additional money from John's case?
Paul Ryan’s fairytale budget plan is written by David Stockman. Stockman argues in his perspective on Ryan’s future budget plan. Stockman begins his view towards Republicans government. He blames the Republican Party that runs capitalism for the country’s increased debt. If the big government cuts of taxes for the “job creators,” it will have no positive effect on the economic status, but will decline and collapse eventually.