Tax case meno Research Paper Example | Topics and Well Written Essays - 1000 words

Tax case meno - Research Paper Example Normally, the cost of tools forms part of capital goods that the company requires to run its operation. Under the IRC section 263A, the uniform capitalization rule dictates that the taxpayer should produce information for all direct costs and certain in direct cost concerning tangible and real property. The law defines tangible and real property as those that lead to production such as to construct, build, install, manufacture, develop, improve, create, raise or grow (DiNardo, Baldwin and Harris 106). From this provision of the law, it is evident that the allowances that the company pays to cater for the cost of various tools of trade fall under capital goods and that they are tangible in nature. If this were the case, the provision of IRC section 263A, states that the taxpayer should treat such information as direct because they affect the cost of capital. It follows therefore, that Cambro Construction Company should treat the allowances it reimburses as cost for capital goods. Comb ro Company should treat this case as cost associated with tangible assets, which it uses to aid production. Therefore, the tax treatment for this case should be ordinary. Under this category, the taxpayer should accumulate all the information concerning this cost and treat them a cost of assets used in production. Thus, Cambro Construction Company should prepare tax report concerning the accumulated cost it incurred to reimburse cost for the capital goods. For a cost to qualify as capitalization cost under IRC section 263A, it must fall into the capital accounts as defined by section 1.446-1(c) (1) (ii). This provision tends to define the treatment of cost incurred by a company to buy assets or other related costs. The section 263A states that: Except as otherwise provided, direct and indirect costs that directly benefit or are incurred by reason of the performance of production or resale activities must be capitalized to the property produced or acquired for resale (DiNardo, Baldwi n and Harris 106). The provision of section 1.263A-1(e) (3) (iii) gives examples of indirect costs which the taxpayers should capitalize are tools and equipment. Further, this provision indicates that the producers must capitalize costs other interest whether incurred before, during, and after production period of property. Arguing from this provision, the cost incurred by Cambro Construction Company to reimburse the capital cost of its carpenters fall under the indirect costs. Thus, Cambro Construction Company should treat such indirect cost as provided for in the section 263A of the IRC. The must record this information whether it incurred it before, during, or after the production period. This implies that the law does not exempt the company from compiling tax information concerning the property that it acquired during its construction period. Largely, the fact that Cambro Construction Company does its activities with an aim of reselling them further makes it necessary for it to capitalize this cost. Cases bordering incidental repair of property seems to be closer to the above facts but not exact. In incidental repair, the taxpayer deducts a given cost to repair of the property with a view of prolonging the use of that property. Section 167 provides the treatment of such repairs. When a taxpayer makes full replacement for the property, the treatment that follows should be capitalization or depreciation as

The Use of Financial Tools in the Management Process Term Paper

The Use of Financial Tools in the Management Process - Term Paper Example Investments have related interest expense amounts. The same return shows the interest rate that is used to generate a resultant zero net present value. The present value is arrived at by using an interest rate in the computation. The annual or periodic cash inflow is collected. Examples of inflows of cash are: ? 260 for year 1, ? 280 for year 2, ? 250 and for year 3. The interest rate is given. The periodic or annual inflows of cash are multiplied by the present value factor (interest rate). The result of the multiplication activity is the present value amount of the periodic inflows of cash (Hilton, 2011). To computation of the rate of internal return, the present values are determined. Next, the decision maker must equate the cost of the investment as the total inflows of cash. Subtracting the two accounts, the net present value is nil (Daft, 2011). Next, the internal rate of return can be easily computed (Sollenberger, 2008). The total present value of net inflows of cash is divid ed by the total inflows of cash. The computation outcome is traced is plotted on the net present value table. The decision maker searches for the column where the division result falls. Further, the internal rate of return (IRR) tool is used to compare the financial performance of two or more entities. For example, the internal rate of return of Reagan Company is 6 percent. Further, Washington Company has an internal rate of return of 8 percent. Comparing the two companies’ internal rate of return, Washington Company has a better internal rate of return. The company with a higher internal rate of return output shows a financially better business image (Gitman, 2008). Compared with the net present value decision-making tool, the internal rate of return is a better management tool. Most decision makers prefer the internal rate of return. The internal rate of return places importance on times’ effect on money, cash flows. Time value analysis includes placing a higher value on the earlier collection or payment of cash amounts over the same amount of cash collected at later years.  

US v Patel Essay Example | Topics and Well Written Essays - 250 words

US v Patel - Essay Example One of the main purposes of judicial system is to provide the root cause of social problems. As it appears, the court was much concerned with administering punishment rather than finding out why the defendant was engaging in the medical frauds. There is a possibility for instance that Dr. Patel was not the only one engaging in this unscrupulous activities. Secondly, it has not been included in the case what the defendant wanted to achieve though his actions. It is therefore not possible for the court to prevent such acts from occurring in future. In conclusion, the case study concerned a cardiologist by the name of Dr. Panel who was engaging in unscrupulous and unethical activities. He performed operations on his patients without letting them know what he was actually doing. It is through the intervention of the court that this problem was discovered. While the intervention was important, the court failed in establishing the motivation behind the acts. Punishment alone should not be used to address crimes within the

One Sample Hypothesis Test Essay Example for Free

One Sample Hypothesis Test Essay Earning potential and income of every person is severely different; many factors have a hand in determining the amount of money a person makes and how much his or her earning potential can increase. Some of the factors currently determining the earning potential of people around the United States are; education, marital status, age, union participation, race, age, years of experience, sex, the industry in which the individual works, and the position held by individual. This paper is going to show the correlation between marital status and income, the team has disregarded all other determinants to answer the research question clearly. The research question that the team has developed and the hypothesis was formed from goes as follows; does marital status affect earning potential? Every decade that passes, it seems as though people are waiting longer to get married. Waiting for job security, completion of college and social norms are just a few factors that influence this trend. This is a big change from 50 years ago, when most people would get married straight out of high school. The fact is being single has some advantages when deciding to start a career, it also affects ones earning potential. Being single allows more dedication to the job as well as the mobility to go wherever the job may take an individual. While being single may be good for starting a career, being married will actually increase a person’s earning potential in the long run. The mean salary for the single person is $24,864 per year. The mean income for married individuals is $33,303. This leads us to our null hypothesis (H0) that being married will not improve the earning potential of an individual. Our alternate hypothesis (H1) is that being married will help improve the earning potential of an individual. Numerically it is stated: H0: ÃŽ ¼1 ≠¤ ÃŽ ¼2 H1: ÃŽ ¼2 ÃŽ ¼2 The five-step hypothesis test starts with stating the null and alternative  hypothesis. The null is H0: ÃŽ ¼1≠¤ÃŽ ¼2 and the alternative hypothesis is H1: ÃŽ ¼1ÃŽ ¼2. The second step in find the decision rule. The decision rule is reject H0 if ÃŽ ¼1 ÃŽ ¼2 ÃŽ ¼1. Step 3 is to calculate the test statistics. It has come to the mean of the earning potential of those who are married and those who are unmarried. Married couples have a mean salary of $33,303.00 and unmarried individuals have a mean salary of $24,864.00. Step 4 is to compare the test statistics to the critical value. The test results in married couples have a greater income than the salaries of unmarried people. Step 5 is to state the results. In result, married couples have greater earning potential than that of their unmarried counterparts. Therefore, in this case the team has to reject their null hypothesis because they have discovered a greater earning potential for married couples over unmarried individuals. The team’s results provided support to the null hypothesis that a married individual has a higher earning potential than that of a single individual. As previously stated a single individual on average makes $25, 000 while married individuals make on average $34,000 a year. Our research also indicates more working individuals are married over single. Our sample only included 33 single and 67 married individuals. Our study also found non-married men have wages that range from $11,000 to only $27,000 while non-married females wages range from $15,000 to $83,000. Married men have wages that range from $28,000 to $84,000, married women however only have wages that range from $11,000 to $50,000. This shows independent women with one sole income on average make more than men. However, after marriage, the men tend to become the higher wage earner. Education does not appear to play a significant role it ranges from four to 18 years. A married man with 18 years of education can made up to $84,000 while a single man also with 18 years of education only made $27,000. That is in contrast with a single woman with 17 years of education who make $83,000 a year and a married woman with 17 years of education who made $34,000. The maximum wage for a married woman was $50,000 and this was with 12 years of education. We analyzed many different aspects of earning potential and the majority proves a married individual will make more than that of a single individual. With all of the numerical data analyzed, the research question answered, and the hypothesis being correct, the team has been able to state confidently that marital status drastically affects  earning potential. On average, those who are married make nearly $8,500 more than those who are unmarried. Several other factors determine the income potential differences, but without further analyses of data not provided in the data set, the team would just be throwing around assumptions on the matter. References David P. Doane, L. E. (2007). Applied Statistics in Business and Economics. New York: McGraw- Hill.

Ernest Hemingways Code Hero in For Who The Bell Tolls and A Farewell T

Ernest Hemingway's Code Hero in For Who The Bell Tolls and A Farewell To Arms They were American innocents negotiating the river of life wherever it took them: to Italy, to Spain, to Africa, to the Caribbean, wounded men laughing through the pain, sometimes risking their skins but never sacrificing their honor. It was a river into which countless writers would thrust their paddles.(Papa) Ernest Hemingway is arguably one of the most important writers in American history. Though this is disputed, Hemingway has undoubtedly had a major influence on contemporary American literature. One aspect of Hemingway's famous writing that shines in almost all of his works is the hero. Hemingway created the famous Hemingway code by which all of his heroes, often called code heroes, lived. One critic asserted that, 'Hemingway invented more than a style he invented the Hemingway hero.' (Papa) Hemingway attempted to live by this code but did not enjoy the success of his fictional characters. In fact, critic Joseph DeFalco states, 'The type of hero that can accomplish such a feat [living up to the Hemingway code] is rare in any area of life.' (195) The code hero was not rare, however, in Hemingway writing. Robert Jordan in For Whom The Bell Tolls and Frederic Henry in A Farewell To Arms are perfect examples of the Hemingway code hero. The Hemingway code is, ?a grace under pressure. It is made of the controls of honor and courage which in a life of tension and pain make a man a man and distinguish him from the people who follow random impulses.? (Young 63) Additionally, this ?grace under pressure? can be expressed as, ?an ability to be in difficult situations without succumbing to either panic, enthusiasm, or indifference, is the hall... ...back Fiction, 1929. Hemingway, Ernest. For Whom The Bell Tolls. New York: Scribner Paperback Fiction, 1940. Molesworth, Charles. ?Hemingway?s Code: The Spanish Civil War and World Power.? Blowing the Bridge. Ed. Rena Sanderson. Westport: Greenwood Press, 1992. 83-97. Norton, Charles A. ?The Alcoholic Content of A Farewell to Arms.? Hemingway in Italy and Other Essays. Ed. Robert W. Lewis. New York: Praeger Publishing, 1990. 309-313. ?Papa and All His Children,? U.S. News & World Report: 1 Jun. 1998, Vol. 124: Issue 2. Mas Full Text Premiere. Rehberger, Dean. ?I Don?t Know Buffalo Bill?s; or Hemingway and the Rhetoric of the Western .? Blowing the Bridge. Ed. Rena Sanderson. Westport: Greenwood Press, 1992. 159-184. Young, Phillip. Ernest Hemingway: A Reconsideration. University Park: The Pennsylvania State University Press, 1966.

Level 2 Unit 6.1.3 Essay

There are lots of different ways of gaining further qualifications, skills or work experience – and the range of options is growing. You could: †¢continue in full-time education, either at school or college †¢continue your learning through work-based training If you’re aged 16 or 17 and coming towards the end of a school or college course, the ‘September Guarantee’ means that you’ll definitely be able to continue learning. Everyone in this age group due to leave education is guaranteed an offer of a place on an appropriate course – and information, advice and guidance to help weigh up their options. Staying in full-time education There is a much wider range of subjects and qualifications that students are able to choose from up until now. As well as A levels, there is a growing range of work-related qualifications. Selected schools and colleges are also offering the Diploma qualification for 14 to 19-year-olds. Depending on what type of study is taken there is an option to stay on at school, or go to a sixth form college, specialist, college or further education college. Students with a disability or learning difficulty, should check how there school or college could provide extra help to ensure that they are assessed fairly. Learning at work If ready to start work then it’s important to pick a job that offers planned training leading to a nationally recognised qualification. There are lots of ways to improve skills and get qualifications, from Apprenticeships to the ‘Entry to Employment’ scheme. Apprenticeships As employees, apprentices earn a wage and work alongside experienced staff to gain job-specific skills. Off the job, usually on a day-release basis, apprentices receive training to work towards nationally recognised qualifications. Anyone living in England, over 16 years-old and not in full-time education can apply. Apprenticeships can take between one and four years to complete depending on the level of Apprenticeship, the apprentices’ ability and the industry sector. The minimum salary is ? 2. 60 per hour; however, many apprentices earn significantly more.

Capital Asset Pricing Model Essay

The capital asset pricing model (CAPM) is an important model in finance theory. CAPM is a theory or model use to calculate the risk and expected return rate of an investment portfolio (normally refer to stocks or shares). All stocks have 2 risks: Systematic Risk (also called Market Risk which affect every stocks) and Unsystematic Risk (also called Specific or Unique Risk that only affects individual stocks). To diversify unsystematic risk, we selected and combined different stocks, which are negatively correlated with one another into one portfolio. In this way risk are eliminated greatly. See diagram below. CAPM Equation The general formula used for Capital Asset Pricing Model is: re = rf + [ ß (rm – rf) ] where the components are as follows: re = Expected return rate of the investment portfolio rf = Risk free rate of return ß = Beta (correlation between the shares and the market) rm = Expected market return which also means: rm – rf = Market risk (systematic risk) ß (rm – rf) = Risk premium *Beta is overall risk value for investing in the stock market. The higher the beta, the more the risk. CAPM Example Assume there is two Investment portfolio (stocks) or project – A & B. With the information given below, we can use CAPM to help us decide which to invest on. risk free rate beta expected market return A 3% 2.5 10% B 3% 1.2 10% From the beta value above, we know A is a more risky portfolio. A is 2.5 times more risky than the overall market and B is 1.5 times less risky. †¢ Expected return produce by A re = rf + [ ß (rm – rf) ] re = 3 + [ 2.5 (10 – 3) ] = 20.5 % †¢ Expected return produce by B re = rf + [ ß (rm – rf) ] = 3 + [ 1.2 (10 – 3) ] = 11.4 % Using CAPM formula, we calculated A produce a 20.5% expected return rate. It is higher than the overall market expected return, which is 10%. Whereas for B, the expected return rate are only 11.2% compare to market return of 10%. Base on result, A is definitely a better but if you don’t feel conformable with A’s risk or think it might not able to produce the expected return rate, then you would probably can choose investing in B. Criticisms of CAPM Although CAPM seems to be one of the most widely used methods to determine the expected return of a investment portfolio, It still have its limitation. Many had criticized on its unrealistic assumptions. †¢ Required a well-diversified portfolio Firstly CAPM works really well with a well-diversified portfolio as it accounted for systematic risk (market risk) but as seen on the graph on page 1, systematic risk is still undiversified. Therefore unsystematic risk is ignore in CAPM calculation. †¢ Beta as it main calculation components As Beta value are computed base on past one year figures so in this case CAPM assume that the future won’t change. Also beta may not really reflect the actual performance of different stocks. This was question by professors Eugene Fama and Kenneth French where they looked at share returns on the New York Stock Exchange, the American Stock Exchange and Nasdaq between 1963 and 1990, they found that differences in betas over that lengthy period did not explain the performance of different stocks. The linear relationship between beta and individual stock returns also breaks down over shorter periods of time. These findings seem to suggest that CAPM may be wrong. †¢ Risk free rate of return CAPM assumes there is a risk free rate where investors can borrow or lend at this rate but it is not true in the real world. †¢ Perfect capital market exists There is no transaction cost for trading in the market and profit is non-taxable. †¢ All investor are the same CAPM assume all investors have the same expectations on the risk and expected return.