In a closed-fact problem, the main goal of tax research is to: find support for an action the taxpayer has already taken.
Explanation:
When filing a tax return, many people are medically supported. Strong tax research skills are even greater because of their complexity and application in tax law. The purpose of this chapter is to provide information and advice on tax compliance analysis as well as tax planning. In addition, the technique of tax analysis is quite similar to accounting and auditing.
The aim of tax research is to increase the profit or gains of the taxpayer. The aim is not to generate the minimum tax liability potential. Customers should determine the accuracy of tax returns or try to minimize possible IRS conflicts.
This difference of perspective — to optimize after-tax gains instead of reducing taxation — is particularly important when one considers that many tax planning techniques require such pre-tax income transfers, either in the form of additional expenditures, income avoidance or both.
Answer:
$18,000
Explanation:
Sunk costs refers to a cost that has been expended and cannot be recovered or recouped.
With regards to the above, $18,000 was expended concord by corporations to purchase computers hence cannot be recovered. Therefore, it is a sunk cost.
Answer: 10% or $2,000,000
Explanation:
Seeing as no figures were produced, we will have to do this ourselves.
We will make assumptions which include the following,
Life of the equipment = 10 Years
Salvage value = 0
Those are our 2 assumptions.
In that case then,
The Annual Depreciation will be,
Depreciation = (Cost of equipment - Estimated salvage value) / Estimated useful life
= (20 - 0) / 10
= $2 million
Seeing as 2 million is,
= 2/20 * 100
= 10%
That would mean that annual depreciation costs at that facility will rise by $2 million or 10%.
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Answer:
C
Explanation:
They sell shares at a price to investors. They then use these funds to help grow their business and in turn pay dividends to shareholders
