Please provide your answer to each question in the space provided below.
When finished, submit to the DropBox.
Chapter 1 (5 pts)
1. Briefly discuss the purpose of the Sixteenth Amendment?
The purpose Sixteenth Amendment was to give the congress the power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several states, and without regard to any census or enumeration. Now Congress has clear authority to enact a tax on income from whatever source derived on corporate and individual, and these taxes could be either direct or indirect(Smith, Harmelink & Hasselback, 2013). Also, if the taxpayers fail to repay, there are penalty for not paying the taxes.
Chapter 2 (5 pts)
2. Explain the two "safe harbors" available to an Individual taxpayer to avoid a penalty for underpayment of estimated tax?
Federal tax law does provide ways to avoid the underpayment penalty, if the taxpayers fail to pay the taxes. There are two “safe harbors” available to individuals:
1. 90 percent of the tax shown on the return or 100 percent (110 percent if adjusted gross income for 2002 and later exceeds $150,000) of the tax shown on the return for the preceding taxable year (assuming it showed a tax liability and covered a taxable year of 12 months). Code Sec. 6654(d)(1)(A) and (B). (Smith, Harmelink & Hasselback, 2013)
2. An amount equal to 90 percent of the tax for the taxable year computed by annualizing the taxable income received for the months in the taxable year ending before the month in which the installment is required to be paid. Code Sec. 6654(d)(2). (Smith, Harmelink & Hasselback, 2013)
Chapter 3 (5 pts)
3. Explain the distinction between an "above the line" deduction (i.e. FOR AGI) and a below the line deduction (i.e. FROM AGI). Which one is more valuable?
They are both types of deductions may reduce a taxpayer’s taxable income, the above the line deductions are the deductions that taken out before the adjusted gross income while below the line deduction are deductions that taken out after the adjusted gross income. I believe above the line deductions are more valuable than below the line deductions because below the line deductions are more uncertain and subject to
Alejandro Lopez FIN515 Managerial Finance Dr. Wayne Morgan Week 1 Homework Assignment 15 of May 2013 Mini Case (page 45) Assume that you recently graduated and have just reported to work as an investment advisor at the brokerage firm of Balik and Kiefer Inc. One of the firm’s clients is Michelle DellaTorre, a professional tennis player who has just come to the United States from Chile. DellaTorre is a highly ranked tennis player who would like to start a company to produce and market apparel…
In terms of which economic system would be best suited for handling a crisis of epic proportions, a mixed economy would be most efficient. When it comes to any kind of disaster, whether it is natural or not, people often look to their government for aid. No matter the size, a natural disaster can affect the lives of many people, from just a few, to hundreds and thousands. Yet, natural disasters often make it difficult for a government to respond quickly and effectively (Natural Disasters). When it…
Week 1 Homework Case 1.1: Drexler’s World Famous Bar-B-Que Drexler’s Restaurant has been the pride of a community in Houston Texas since the late 1940’s. Although the restaurant has changed ownership over the years it has not lost its place in the community. Drexler’s shares in community involvement as well as benefits from the loyalty of its customer base. Because of its enormous success over the years Drexler’s has under gone remodeling and reconstruction. The current owner Eunice Scott…
1. Which of the following choices may lead to competitive advantage (1) new products, services and business models; (2) charging less for superior products; (3) responding to customers in real time? 1, 2, and 3 2. An information system can be defined technically as a set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization. p. 15 3. The three activities…
Homework Week 1 1. Discuss the term "complementary assets" relative to information systems use. The development of technology and its influence to the business growing nowadays has created a strong motivation in innovation and changing organization, putting information system the most important investment. If a business doesn’t update the new technology and invest in information system, they may not take fully advantages of existing capabilities to make higher productivity and higher profit, and…
M. G. (2011). Planning for Uncertainty. Journal of Accountancy, 212(4) 32-36. Lamoreaux, M. G. (2012). A New System for Recognizing Revenue. Journal of Accountancy, 213 (1) 30-35. Richards, G. E. and Spencer, S. L (2012). Three Common Currency-Adjustment Pitfalls. Journal of Accountancy, 213(2) 30-35. COURSE LEARNING OUTCOMES 1. Determine the difference between managerial and financial accounting, and their interrelationship. 2. Analyze the concepts of job order costing, process costing, and activity-based…
different from those questions that are to be completed at home .The homework exercises are additional and will help to reinforce your knowledge of the chapter. There will also be additional problems and cases (including past exam questions) provided to you in the tutorial each week to be worked on in class. Please complete the homework exercises before coming to class as well as the tutorial exercises. The tutorials are always one week behind the lectures (ie the material is covered in the lecture and…
Office hours: Monday & Thursday 11am-12pm, ISyE Main 418 Students learn core concepts and methods to analyze energy and environmental impacts of industrial systems and product lifecycles including production, transport, use, and end-of-life. Part 1: Fundamentals • Energy: Energy calculations for mass, fuel energy value, electricity generation, energy efficiency, and applying energy knowledge to calculate energy resources and constraints. • Water: Water mass balances, water needed for electricity…
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----------------------- Dominguez High School Algebra II 2nd Quarter Week 1- Week 5 Oct 30 – Nov. 30 |Week 1: Oct 30 – Nov 2 |Week 2: Nov 5 – Nov 9 |Week 3: Nov 12- Nov 16 |Week 4: Nov 19 – Nov 21 |Week 5: Nov 26 – Nov 30 | | Lesson 6.2 Multiplying Polynomial |Lesson 6.3 Dividing Polynomial |Lesson 6.4 Factoring Polynomial |Lesson 5.5 Complex Numbers…