Capital Gain Tax Case Study

As a tax agent, the employer is only responsible for taking the correct tax deductions from the W-4 tax elections and depositing those tax deductions to the right agency. Remember that tax situations can change throughout the year and these tax forms should be modified to reflex those changes. Prospective employees need to have any deduction related questions ready for the payroll representative. The representative will be able to answer questions concerning the different types of benefits offered and how they will affect the net pay. Here are a few examples.

Cost of equity was calculated using the 10 year UST rate, 5.02%, because it is a good measurement of the risk free rate, plus the firm’s beta, 0.56, multiplied by the risk premium, which we concluded to be 5%. This gave Blaine, when unlevered, a WACC of 7.82%. When taking the $40 million debt and $100 million cash buyout of stocks into account, cost of debt is now a factor. Cost of debt was 5.88%, the bond rating of a AAA rated company like we assume Blaine

compounded annually on each policy anniversary to beat inflation  The Sum Assured equals the monthly benefit amount chosen at inception x Policy Term x 12 o Option C: Loan Protection The life cover (Sum Assured) reduces uniformly on each policy anniversary over the term of the policy. The applicable Sum Assured on the year of the unfortunate death of the life insured is paid to the nominee. • Maturity Benefit:

Bargain purchase A bargain purchase consists of financial assets acquired for less than fair market value. In a bargain purchase business combination, a corporate entity is acquired by another for an amount that is less than the fair market value of its net assets. Bargain purchase arises when the price paid for the fair value of the equity shares of the investee is less than the fair value of the net asset of the investee on the acquisition date. In a situation where the investor acquire 100 percent interest in the investee and if the consideration transferred is less than the fair value of the identifiable assets, liabilities and contingent liabilities of the investee on the date of business combination, there is a bargain purchase.

Non-current assets are items owned by an entity that cannot be converted into cash within one year. Goodwill is the value of the company’s reputation, location, and brand. Goodwill is an intangible asset. It appears on the balance sheet when a company buys another and pays more for the company’s intangible assets than tangible assets. There are three sources of goodwill of Dollarama Inc.

Danquis DeArmond Management 325 Saint Leo University 5/16/2016  First, we have Tax-Favored. Being Tax-Favored is favorable in tax terms for firms or companies to raise money through debt instead of going through the stock market. A company raises money through the stock market, and when that happens it is submitted to get taxed two times. This means the company’s earnings are taxed as part of the corporate income tax, after this is done normally the profits that are leftover get paid out to shareholders as dividends.

As for other tradeable assets, since MEG eliminated its dividend in 2009 and reached a nearly 100% debt/total capitalization ratio in 2011, we speculated that MEG had already used up its non-core assets to lift its financial

These two expenses are usually higher than the standard deduction. Therefore, an a homeowner would benefit the most by itemizing his real estate expenses. A recent purchased $550,000 house in Anaheim has a monthly mortgage payment of at least 2000 dollars. The first year about 90 percent of the mortgage would be interest (20,000x12x.90) 21600, and property taxes of $1900 dollars.

When the production of A3XX reached its optimum capacity in 2008, the average realised price of it would be $225 million with operating margins of between 15% and 20%, which was the same margins as what the Boeing 747 had. These were all sorely based on earnings before the repayment of the launch aid that was provided by the government and also risk sharing partners. In connection to that, the investments from RSPs and the launching aid were not treated clearly. It could be considered as either cumulative preferred stock or as debts. If it is assumed as a preferred stock, appropriate measures would be to discount cash flows at an unlevered cost of capital.

Intel Corp.'s identified intangible assets declined 2013 (5,150 million) to 2014 (4,446 million). Goodwill is the amount paid more the fair value of any asset in the acquire, adjusted for any amortization recognized prior to the adoption of any changes in generally established accounting principles and for any impairment charges, go beyond of the fair value of net assets acquired in one or more business combination transactions. Intel Corp.'s goodwill increased from 2013 (10,513 million) to 2014 (10,861 million). Identified intangible assets and goodwill is the sum of the carrying amounts of all intangible assets,

This is called portability and is limited for the 2011 and 2012 tax years unless Congress acts to expand this provision in the future. After 2012, if no legislation has been enacted, the exemption will revert to $1,000,000. Each year an individual may transfer $13,000 of property per beneficiary without paying gift taxes on such transfer. Any transfer over the $13,000 exclusion is subject to gift tax. However, a donor can make direct transfers to qualified medical and education institutions for the benefit of a beneficiary’s education and medical benefits without being subject to a gift

Accounting policy efficiency and reliability Target Corporation’s accounting policy is both efficient and reliable. However, in relation to the ratios discussed earlier, the use of estimates accounting policy is one that may require additional attention. This policy requires management to make estimates and assumptions affecting reporting amounts in the consolidated financial statements which can link to the payout ratio, the return on assets ratio (ROA), and also the earnings per share ratio (EPS). By comparing the estimates, management makes in comparison to the actual numbers presented in the statement, it would support us to make reflections on numbers that look unusual. All three ratios connect to the assertion accuracy since their amount

Currently, the exchange rate is 1:20. Accordingly, the distribution of the previously taxed E&P would result in a recognition of exchange loss of $800K pursuant to IRC Section 987. Thus, the net taxable distribution will be USD 2.1M 3) Computing the net tax liability arising from the distribution of the net

Running head: Target Inc – Income Taxes and Pension 1 Target Inc – Income Taxes and Pension 4 Income Taxes and Pension Target Inc Jackson Biegler Southern New Hampshire University Income Taxes A. The income statement and balance sheets for Target will show a positive benefit respectively if Congress has successfully voted to eliminate taxes at the corporate level. Not only would the income statement show savings for income tax expense, but it would also increase the corresponding net income for Target. Additionally, there would be an increase in earning per share. On the other hand, the balance sheet would also show the benefits of not having a tax at the corporate level as well, as there would be no balance for income tax liability which would correlate with a retained earning increase.

From the two separate land and building sales, HCC is taking in $10,563,161 for the property. Recall that HCC invested $16,102,702. That means at least $5,539,541 in tax dollars were lost on the Sienna location. HCC sold a $16 million dollar investment for $10.5 million.