Question

Estelle is a recent accounting graduate, and while she likes the idea raised by her fellow graduate Fernando to set up business in a partnership together, she has always wanted to go into business for herself. Before Estelle makes a decision, her instructor tells her it would be a good idea to consider the effect of different tax structures on each type of business, just in case she favors one situation more than the other. Compare and contrast how partnerships and sole proprietorships differ in terms of their tax requirements.
Sanjay was recently alerted to the fact that his business will be audited by the IRS. What are some possible causes for Sanjay’s business being selected for audit? What will this audit likely entail? How can Sanjay prepare?

After getting his first paycheck, Marlon is incredulous at the amount of money that goes to FICA. “Who in the world is FICA?” he asks his mother. How does she reply?

Eloise has exactly $300 to spend on an airline ticket. Assuming that she will need to pay the passenger ticket tax, the passenger facility charge, and the Sept. 11th fee, what is the maximum base ticket price Eloise can still afford to pay, knowing that she has all these additional fees and taxes to pay? Explain.

Sloan has always been pretty lax about preparing her taxes, and she doesn't pay too much attention to the rules. However, after taking a class on tax fraud, she is a bit concerned that some of the information in her past tax returns may be questionable. Sloan should only be worried about tax fraud if she’s made certain mistakes in the past. What kind of mistakes should Sloan be concerned about? Explain.

Answer 1

#2 should be $250 not including taxes and fees