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BlackZzzverrR [31]
3 years ago
6

Determine whether each scenario is an example of tax avoidance or tax evasion. Andrea keeps a record of all her business-related

expenses. Daniel claims the amount of interest paid for his mortgage as a tax deduction. Christian did not report the tips he earned on his tax return.
Business
1 answer:
Brums [2.3K]3 years ago
7 0

Answer:

1. Tax avoidance

2.Tax avoidance

3.Tax evasion

Explanation:

Tax avoidance refers to a legal way of reducing one's tax liability through lawful deductions. Ways to reduce tax liabilities are; capitalizing on tax advantage retirement accounts, liasing with tax advisor on the legal way for tax avoidance. Tax avoidance is however legal.

Examples of tax avoidance are;

1. Andrea keeps a record of all her business related expenses.

2. Daniel claims the amount of interest paid for his mortgage as tax deductions.

Tax evasion is a deliberate attempt by a tax payer to avoid payment of tax liability. It is a fraudulent action by a tax payer to wilfully evade tax in an illegal manner. In tax evasion, income is concealed to tax authorities inorder to evade tax payment which is a criminal offence. It is to be noted that tax evasion is illegal in the eye of the law.

Example of tax evasion is ;

3. Christian did not report the tips he earned on his tax return.

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The​ ________ approach recognizes that both financial and operational performance measures should be considered when evaluatin
Reil [10]

Answer:

The correct answer is balanced scorecard.

Explanation:

The concept of balanced scorecard came from the idea of looking at the strategic measures in addition to financial performance of an organization in order to have an holistic view of the organization's performance. It is also a strategic tool used in setting key performance indicators (KPIs) for organizations.

The balanced scorecard is used to:

  • set an organization goals, strategic intent and objectives
  • tailor the daily work performance towards strategic targets of the organization
  • design and delivery of projects, goods and services
  • then, set performance measurement
5 0
3 years ago
An automotive company was looking to expand internationally and selected three possible countries in which to build a factory. A
Anon25 [30]

Answer:

The automotive company has run into bribery and corruption, one of the most common ethical challenges businesses faced today as they expand internationally.

Explanation:

As with the given scenario above, this company had three potential countries in which to expand their business of building a factory. These countries asked for an amount of extra kickbacks in exchange for helping the company run their business with ease.

However, in the business world, <em>kickbacks</em> are considered an illegal form of payment (or bribe) that one may gave as a compensation to an individual or organization with a considerable superiority and great influence in exchange for an improper advantageous treatment or service.

Such misappropriation of money violates the state or federal laws, which makes it a form of corruption.

Now, the automotive company from the given scenario had faced a dilemma whether to accept the bribe or not. It's a challenge for them as their decision might positively or negatively affect their business expansion.

7 0
3 years ago
You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 3.9 percent indefinitely
yKpoI14uk [10]

Answer:

$48.2

Explanation:

The increase in dividend is 3.9%

= 3.9/100

= 0.039

The recently paid dividend is $3.62

The required return is 11.7%

= 11.7/100

= 0.117

Therefore the price per share of the company stock can be calculated as follows

= 3.62(1+0.039)/0.117-0.039

= 3.62(1.039)/0.078

= 3.761/0.078

= 48.2

Hence the price per share is $48.2

5 0
3 years ago
Kangaroo Autos is offering free credit on a new $10,000 car: You pay $1,000 down and then $300 a month for the next 30 months. T
gavmur [86]

Answer:

Kangaroo Auto offers the better deal

If the I go for Kangaroo Autos, then I will save $257.69 in today's term

Explanation:

Here we need to compare the present value of the two options;

Present value is the worth today of an amount or series of amount payable or receivable in the future period.

Where a series of equal amount is receivable or payable in the future it is called an annuity.

One of the payment options includes an annuity. Therefore, we need to work out the present value of the annuity. This is done using the following formula:

Present Value = A ×( 1 - (1+r)^(-n))/r

where A = equal cash flow, r- rate per period, n - no. of periods

A = 300, r- rate per month - 12%/12 = 1% , n= 30

PV = 300 ×(1- (1+0.01)^(-30))/0.01

    = 300 × 25.877

     =7,742.31

Now we can work out he cost of each option  and comapare them in today's Dollar:

Option 1 : Kangaroo Autos

Total cost of option 1 = deposit + PV of annuity

                                  =   1000 + 7,742.31

              cost              = 8,742.31

Option 2: Turtle Motors:

Price =  Car price - Discount

        =   $10,000 - $1000

     cost    =   $9,000

Kangaroo Auto offers a better  deal.

If  I go for Kangaroo Autos, then I will save $257.69 in today's term

4 0
3 years ago
Perpetual Inventory Using LIFOBeginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:Inve
Ivan

Answer:

<u>Date                                      Purchases                    Sales        </u>

May 1                                1,550 units at $44

May 10                                720 units at $45

May 12                                                                    1,200 units

COGS                                                                  (720 x $45 = $32,400)

COGS                                                                  (480 x $44 = $21,120)

TOTAL COGS FOR MAY 12 SALE                       = $53,520

Inventory after sale        1,070 units at $44

May 20                             1,200 units at $48

May 14                                                                      830 units

COGS                                                                  (830 x $48 = $39,840)

TOTAL COGS FOR MAY 14 SALE                       = $39,840

Inventory after sale         1,070 units at $44

                                          370 units at $48

May 31                                                                    1,000 units

COGS                                                                  (370 x $48 = $17,760)

COGS                                                                  (630 x $44 = $27,720)

TOTAL COGS FOR MAY 12 SALE                       = $45,480

Inventory after sale        440 units at $44

Under LIFO (last in, first out), the cost of goods sold is determined using the price of the last units purchased, which means that the most recent (or updated) price is used to calculate COGS.

7 0
3 years ago
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