Week 1 Homework Tax

Satisfactory Essays
Chivonne M. Joseph

ACCT553
Week 1 Homework
­­­­­­­­­­­­­­­­­­­­­­­_________________________________________________________
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 16th Amendment allowed Congress to impose taxes on whatever source derived. The sourced could be direct or indirect and without regard to census. The purpose of the taxes was to help financially support the government.

Chapter 2 (5 pts)
2. Explain the two "safe harbors" available to an Individual taxpayer to avoid a penalty for underpayment of estimated tax.
The penalty can be avoided if the taxpayer can prove that the error was not done by willful misconduct. That the taxpayer was acting in good faith, this burden of proof lies with the taxpayer.
The two reason I chose.
1. The taxpayer records were destroyed in a casualty, such as fire or a super storm flood.
2. Death or serious illness to or in the immediate family of the taxpayer.

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?
Above the line deductions are deductions the IRS allows a taxpayer to take from their gross income to come to their adjusted gross income. These are more valuable because they reduce your tax liability.
Below the line deductions are deductions taken from the taxpayer’s adjusted gross income to arrive at the taxpayer’s taxable income.
This lowers the taxpayer’s taxable income.
Chapter 13 (5 pts)
What is an Installment Sale? Is it a form of income "deferral" ? When can't you elect this form of reporting?
Installment sale is the sale of a property where payment was rendered after the close of the tax year that the property was sold.
Yes, it may be used on a cash basis by the taxpayer to defer gain or to spread the gain over several periods.
If the

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Homework Week #1

    • 787 Words
    • 4 Pages

    FIN 515 Homework #1 1-1. What is the most important difference between a corporation and all other organizational forms? Owners of a corporation are not liable for obligations the corporation enters into because a corporation is defined as a legal entity separate from its owners. 1-2. What does the phrase limited liability mean in a corporate context? Limited liability means that owners/investors are solely liable for the amounts they invested in the company; and owners/investors are not…

    • 787 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Homework Week 1

    • 539 Words
    • 2 Pages

    Homework Week 1 Week One : Alvis Corporation - Chapter 3, Page 93 1. Analyze this situation using the Hersey-Blanchard model and the Vroom-Jago model. What do these models suggest as the appropriate leadership or decision style? Explain. As according to Hersey Blanchard model, a leader has to match his leadership style as according to the needs of maturity of subordinates which moves in a stage and has cycle (Draft, & Lane, 2015, p.68). Leadership style is classified in four categories based on…

    • 539 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Week 1 Homework

    • 759 Words
    • 4 Pages

    Week 1 Homework Chapter 1: Marriage, Relationships, and Family Commitments: Making Choices in a Changing Society 3. What important changes in family patterns do you see today? Do you see positive changes, negative changes, or both? What do they mean for families, in your opinion? As the textbook states on page 13 the three society-wide trends have already dramatically changed American family life and will continue to do so. New communication and reproductive technologies, changes in America’s…

    • 759 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Week 1 Homework

    • 760 Words
    • 4 Pages

    FIN-516 WEEK 1 – HOMEWORK ASSIGNMENT Problem Based on Chapter 14, Residual Dividends Middlesex Plastics Manufacturing had 2011 Net Income of $15.0 Million. Its 2012 Net Income is forecast to increase by 8%. The company’s capital structure has been 35% Debt and 65% Equity since 2010, and the company plans to maintain this capital structure in 2012. The company paid $3.0 Million cash dividends in 2011. The company is planning to invest in a major capital project in 2012. The capital budget…

    • 760 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Week 1 Homework

    • 843 Words
    • 5 Pages

    COMP122 Week 1 Homework Solutions Part 1: Complete the following problems. 1. What is machine code? Why is it preferable to write programs in a high level language such as C++? Machine code is the language which the computer hardware understands and executes. Instructions in a high-level language are closer to a natural language, such as English and therefore are easier to understand and learn than machine language. 2. What does a compiler do? What kinds of errors are reported by a compiler…

    • 843 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Acct550 Week 1 Homework

    • 1034 Words
    • 5 Pages

    Week 1: Homework ACCT550 Chapter 1 CA1-3 (Financial Reporting and Accounting Standards) 1. GAAP stands for: (a) governmental auditing and accounting practices. (b) generally accepted attest principles. (c) government audit and attest policies. (d) generally accepted accounting principles. 2. Accounting standard-setters use the following process in establishing accounting standards: (a) Research, exposure draft, discussion paper, standard. (b) Discussion paper, research, exposure draft…

    • 1034 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Fin516 Homework Week 1

    • 793 Words
    • 4 Pages

    FIN-516 WEEK 1 – HOMEWORK ASSIGNMENT Steven Kelley 5/8/13 Problem Based on Chapter 14, Residual Dividends Middlesex Plastics Manufacturing had 2011 Net Income of $15.0 Million. Its 2012 Net Income is forecast to increase by 8%. The company’s capital structure has been 35% Debt and 65% Equity since 2010, and the company plans to maintain this capital structure in 2012. The company paid $3.0 Million cash dividends in 2011. The company is planning to invest in a major capital project in…

    • 793 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    Homework Assignment Week 1

    • 1195 Words
    • 4 Pages

    Homework Assignment Week 1 2-16 (Objective 2-6) The following questions deal with auditing standards. Choose the best response. A. International Standards on Auditing are established by the: (2) International Auditing and Assurance Standards Board. B. Which of the following best describes what is meant by U.S. generally accepted auditing standards? (2) Measures of the quality of the auditor’s performance. C. The general group of U.S. generally accepted auditing standards includes a requirement…

    • 1195 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Devry Homework Week 1

    • 355 Words
    • 2 Pages

    Homework Problems Professor Hubler 07/12/2015 1. When an investor uses the equity method to account for investments in common stock, cash dividends received by the investor from the investee should be recorded as? D. A deduction from the investment account DI. DII. Sisk Company has owned 10 percent of Maust, Inc., for the past several years. This ownership did not allow Sisk to have significant influence over Maust. Recently, Sisk acquired an additional 30 percent of Maust and now will use the…

    • 355 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Fin515 Week 1 Homework

    • 1441 Words
    • 6 Pages

    In a limited partnership, limited partners’ liabilities, investment returns and control are limited, while general partners have unlimited liability company (LLC), combines the limited liability advantage of a corporation with tax advantage of a corporation with tax advantages of a partnership. A professional corporation (PC), known is some states as a professional association (PA), has most of the benefits of incorporation but the participants are not relieved of professional (malpractice) liability…

    • 1441 Words
    • 6 Pages
    Better Essays