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vesna_86 [32]
3 years ago
10

For 2014, Taxpayer (TP) wants to recognize a deduction. The deduction involves a statute that has not changed since enacted in 1

920. TP is relying on a case called JONES, which is a case decided by the United States Tax Court in 1965 which held in favor of the taxpayer. The JONES case was decided by a United States Tax Court that lies in the 5th Circuit Court of Appeals. At the time the JONES case was decided, its holding was contrary to precedent set by the 5th Circuit Court of Appeals. Which of the following is correct:a. None of the other choices are correct.b. The Golsen rule is inapplicable here and is of no concern for TP.c. The Golsen rule applies here and weakens the legal justification for the deduction.d. The Golsen rule applies here and strengthens the legal justification for the deduction.
Business
1 answer:
Vesna [10]3 years ago
4 0

Answer:

Option c. is correct

Explanation:

Under the Golsen rule, the Tax Court must follows the Court of Appeals such that the court of appeals has direct jurisdiction over the taxpayer. The Court is said to reach a decision without calculating the tax when a Tax Court decision is said to be entered under Rule 155.

In this question, The Golsen rule applies here and weakens the legal justification for the deduction

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Sierra Company incurs the following costs to produce and sell a single product.Variable costs per unit:Direct materials $ 11Dire
ZanzabumX [31]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Variable costs per unit:

Direct materials $ 11

Direct labor $ 6

Variable manufacturing overhead $ 3

Variable selling and administrative expenses $ 6

Fixed costs per year:

Fixed manufacturing overhead $ 58,500

Fixed selling and administrative expenses $ 300,000

During the last year, 29,250 units were produced and 25,500 units were sold.

The Finished Goods inventory account at the end of the year shows a balance of $75,000 for the 3,750 unsold units.

1) Variable costing;

Unitary cost:

Direct materials $ 11

Direct labor $ 6

Variable manufacturing overhead $ 3

Total unitary cost= $20

Cost of unsold units= 20*3750= $75,000

2) Under absorbing costing:

Unitary cost:

Direct materials $ 11

Direct labor $ 6

Variable manufacturing overhead $ 3

Fixed manufacturing overhead= 58500/29250= 2

Total unitary cost= $22

Cost of ending finished goods= 22*3750= $82,500

5 0
3 years ago
Which law signed by president george w. bush, allowed for more economic freedom amongst different kinds of businesses on the 401
natima [27]

Economic Growth and Tax Relief Act law signed by President George w. bush, allowed for more economic freedom amongst different kinds of businesses on the 401(k)

A standard definition of economics might describe it as a social science focused on the satisfaction of needs and desires through the allocation of scarce resources with alternative uses. Economics can be said to be the study of scarcity and choice.

In its simplest and most concise definition, economics is the study of how societies use their limited resources. Economics is the social science of producing, distributing, and consuming goods and services.

Example: When the corn crop increases, the farmer reduces the price of the crop so that the product can be sold. When supply exceeds demand, meaning too much corn is needed to feed the people of the country, the produce is forced to waste and farmers lose production costs.

Learn more about economics here

brainly.com/question/17996535

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6 0
2 years ago
In need of extra​ cash, Troy and Lily decide to withdraw ​$2 comma 100 from their traditional IRA. They are both 40 years old. T
krek1111 [17]

Answer:

Calculate the tax consequence of withdrawal from retirement account.

T and L are 40 years old and decide to withdraw $2,100 from their IRA. They lie in a 35% marginal tax bracket.

Analysis

They are withdrawing some amount from their retirement fund. They have to pay the tax and penalty for early withdrawals from the retirement fund. The withdrawal amount is $2,100 so they have to pay tax on it. The tax rate will be 35% which is their marginal tax bracket.

Calculation of tax consequences if withdrawal amount is $2,100:

Ordinary income tax amount calculates by multiplying the withdrawal amount with the ordinary tax rate.

= $2100 × 35%

= $735

The withdrawal amount attracts the 10% penalty. So, the penalty amount is calculated as follows: Penalty on withdrawn funds calculates by multiplying the withdrawn funds with the percentage of penalty.

= $2100 × 10%

= $210

(NOTE: - T and L have to pay ordinary income tax along with the penalty on their withdrawal because they are withdrawing funds from their IRA before age 59.5.)

Total expenses include the tax amount and penalty charge on withdrawal amount. So, it is calculated as follows:

Total expenses =$735 + $210

Total expenses = $945

Conclusion

Therefore, T and L would incur a tax of $945 on their withdrawal. This $945 is the sum of income tax amount and penalty on withdrawal balance.

8 0
3 years ago
Adams Company has employed a bookkeeper who is inexperienced. On December 28, after reviewing the records for the year, you disc
adell [148]

Answer:

                                      Debit                  Credit

Trade payable                 $300

Cash                                                           $300                              

Explanation:

First we have to reverse the wrong journal entry which has been made by the inexperienced bookkeeper in the Adams Company accounts:

                                      Debit                  Credit

Trade payable                 $300

Cash                                                           $300                              

Now we have to record the correct journal entry in the accounts of Adam Company in respect of account settlement with supplier which is given as follow:

                                      Debit                  Credit

Trade payable                 $300

Cash                                                           $300                              

6 0
3 years ago
Read 2 more answers
The lack of a national law requiring seat belts on school buses is a serious problem in the united states. last year alone, 437
yan [13]
By enforcement the safety in the schools
4 0
3 years ago
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