Describe the fraud. How often do you think tax professionals have corporate clients you are too aggressive with their tax strategies?

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When is a corporate tax strategy too aggressive?

Read the 2-page article included in Canvas on Aggressive Tax Strategies under the Files – Packback folder. Find an example of a corporation that committed tax fraud with an inappropriate tax strategy. Describe the fraud. How often do you think tax professionals have corporate clients you are too aggressive with their tax strategies?

Write a short, clear, and concise overview of your country analysis and market entry plan for your chosen U.S. product/service.

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Colombia FINAL COUNTRY REPORT

1. Executive Summary:
A short, clear, and concise overview of your country analysis and market entry plan for your chosen U.S. product/service. This section present the report’s most important outcomes / takeaways (1/2 page maximum).

2. Country analysis/Business Environment:
Introduction: A factual description of the target country’s business environment. Specifically:
A. Political Environment (political system, political risks for foreign firms)
B. Legal Environment (legal system, legal risks for foreign firms)
C. Economic Environment (economic system, economic stability/risk, monetary system)
D. Trade Environment (major imports, regional economic integration, tariff and trade barriers, government incentives for conducting business there)
E. Cultural Environment (discuss major cultural components and highlight differences with the United States, provide assessments of cultural dimensions with supporting examples) (Note: you may integrate information from your Initial country research report, BUT you are not allowed to copy-paste entire sections as-is)

Explain the benefits derived from investing in deep discount bonds. Explain how to manage bond portfolios and what are the portfolio management strategies.

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Assignment Questions

Q1:  Why do most investors prefer to hold a diversified portfolio of securities as opposed to placing all of their wealth in a single asset?

 

  1. Why do most investors hold diversified portfolios?

Investors hold diversified portfolios in order to reduce risk, to lower the variance of the Portfolio. Variance is considered a measure of risk of the portfolio and is one of the many financial tools used. A diversified portfolio should accomplish this because the returns for the alternative  assets  should  not   be  correlated   so  the   variance   of   the   total  portfolio   will  be generally reduced.

  1. W
  2. Why do most investors hold diversified portfolios?

Investors hold diversified portfolios in order to reduce risk, to lower the variance of the Portfolio. Variance is considered a measure of risk of the portfolio and is one of the many financial tools used. A diversified portfolio should accomplish this because the returns for the alternative  assets  should  not   be  correlated   so  the   variance   of   the   total  portfolio   will  be generally reduced.

Q2: Given the following financial data, compute:

  1. Return on equity.
  2. Quick ratio.
  3. Long-term debt to equity.
  4. Fixed-charge coverage.

 

Assets:  
Cash $ 2,500
Accounts receivable 3,000
Inventory 6,500
Fixed assets 8,000
Total assets $20,000
   
Liabilities and stockholders’ equity:  
Short-term debt $ 3,000
Long-term debt 2,000
Stockholders’ equity 15,000
Total liabilities and stockholders’ equity $20,000
   
Income before fixed charges and taxes $ 4,400
Interest payments 800
Lease payment 400
Taxes (35 percent tax rate) 1,120
Net income (after-taxes) $ 2,080

 

Q3: Explain the benefits derived from investing in deep discount bonds.

Q4: Explain how to manage bond portfolios and what are the portfolio management strategies.

 

 

What are the different types of risks the banks and other financial institutions are exposed to? What are the Asset-Liability Management Strategies? Explain.

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Assignment Questions [10 Marks]

  1. What are the different types of risks the banks and other financial institutions are exposed to?    [2 Marks]
  2. What are the Asset-Liability Management Strategies? Explain. [2 Marks]
  3. Explain the loanable fund theory of Interest Rate Determination. [2 Marks]
  4. What are the different types of derivatives? Take an example and explain Interest rate swaps.    [2 Marks]
  5. Calculate the interest-sensitive GAP (IS GAP) and Relative IS GAP ratio for a financial institution if interest-sensitive assets (ISA) are $100 million and interest-sensitive liabilities (ISL) are $125 million. Is that firm an Asset sensitive? Explain.[2 Marks]

 

 

Calculate the max loss at the 5% confidence level using the standard deviation of NPV. Run a sensitivity analysis on savings to NPV, sales growth rate to NPV, and taxes to NPV. S. Write up your results from ql-q4 and explain if you would accept the project and what risks should be further examined.

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Tax

Your firm is contemplating the purchase of a new $500,000 computer-based order entry system. The system will be depreciated using the MACRS 3-year depreciation schedule. It will be worth 550,000 at the end of the project in 5 years. You will save $50,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $70,000. You will also increase sales by $100,000 per year for the first year and this number will increase by 3% per year. If the tax rate is 30 percent, and the required rate of return is 10%, what is the NPV of this project? 2. Run a scenario analysis for the above problem using the following scenarios. (Assume the answers from question 1 represent the base scenario)

Good (Prob 30%) Bad (Prob 30%) Initial Cost $450,000 $575,000 Salvage $60,000 $25,000 Savings $70,000 $40,000 Sales growth rate 5% -1% Required rate of return 9% 14%

Calculate the max loss at the 5% confidence level using the standard deviation of NPV

Run a sensitivity analysis on savings to NPV, sales growth rate to NPV, and taxes to NPV. S. Write up your results from ql-q4 and explain if you would accept the project and what risks should be further examined.

 

Explain the fraud, explain why you selected this particular case. Describe the internal controls that were absent/ignored/or colluded against which enabled the fraud to occur.

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Fraud case

Select one of the three fraud cases from your fraud readings or from any of the movies listed the module.

  1. Explain the fraud,
  2. explain why you selected this particular case.
  3. Describe the internal controls that were absent/ignored/or colluded against which enabled the fraud to occur.

The readings that were provided were:

 

Who is required to notify the IRS when the cash amounts exceed $10,000, i.e. which type of taxpayers? What type of transactions are required to be reported, i.e. within the definition of “cash” transactions?

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Broking business

Background:

Your client, Mission Bay Pawn Brokers, Inc. (“MBPB”), has many cash transactions with customers. MBPB is in the pawn broking business. MBPB have heard they need to report cash receipt transactions over $10,000 to the IRS on Form 8300. However, MBPB does not want to have to report these cash transactions and are asking if they can suggest to their clients to break the cash transactions into smaller amounts so that no one transaction exceeds $10,000 or suggest the clients pay in other than cash such as crypto or have the clients pay someone else who would then aggregate the payments. MBPB have also considered not informing the customers that the transaction has been reported to the IRS.

MBPB needs advice for the following, and requires primary authorities to support the answer:

  1. Who is required to notify the IRS when the cash amounts exceed $10,000, i.e. which type of taxpayers?
  2. What type of transactions are required to be reported, i.e. within the definition of “cash” transactions?
  3. If crypto currencies are not considered cash for 2022 and 2023, will this change in 2024?
  4. What is considered to be “cash” for the purposes of the reporting?
  5. What is the due date for the reporting of the “cash” transactions?
  6. Is there a reporting requirement to the customer when the transaction is reported to the IRS?
  7. Are there any penalties for failure to file the information with the IRS or the customer about the cash transactions?

You research should consider the following (but it is not an exhaustive list):

  • IRC § 6050I
  • Regs § 1.6050I-1
  • IRC § 6721
  • IRC § 6722

Your responsibility:

Prepare a tax research memo addressing all the questions that has been raised. Please note that if the tax memo is not in the required format and/or contains very little analysis of primary authorities you will receive a zero (0) for the assignment.

You will need to support your conclusion using primary sources of tax law. Your textbook is NOT primary authority nor are IRS Publications. Please refer to Chapter 2 for primary authorities. CCH AnswerConnect is not a primary authority, nor is Google Scholar nor are any other websites you may access. The primary authorities are legislative, administrative and judicial. You may use secondary authorities to assist you with identification and understanding the primary authorities, such as CCH AnswerConnect but your memo should only contain primary authorities.

You must use proper citation form in your memo (see Chapter 2 for help with citation form). The form for this communication should be professional and in the form of a tax research memo (examples posted on Canvas and a similar example in your textbook). You will see that citations are within the text of the document in the example. Once a court case has been cited in full, it can be referred to using simply the name in italics

 

How did the hackers obtain access? What controls could have been implemented to prevent the attack from occurring? What were the consequences of the attack?

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ACCT 4210 Watch a 6-minute video and answer 3 discussion questions

  • Companies like yours – YouTube
  • How did the hackers obtain access?
  • What controls could have been implemented to prevent the attack from occurring?
  • What were the consequences of the attack?

 

Post the balances from the trial balance to the appropriate General Ledger accounts. Post the balances from the accounts receivable and accounts payable totals for Nov. to the ledgers.

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Wizard Computer

Sales and Services, Inc.

Wizard Computers is a retail business dealing in sales of computers and equipment. In addition, the company provides installation and servicing of computer systems. The clientele includes wholesale and retail businesses, professionals, and private individuals. It is both a merchandising and a service business. It is owned by a small number of investors from Inman, South Carolina, with John Jones as the controlling investor.

The following journals should be included in your accounting for the company:

  • Sales Journal
  • Cash Receipts Journal
  • Purchases Journal
  • Cash Payments Journal
  • General Journal

The trial balance for November is included. The accounts receivable and accounts payable ledgers for November are also included. Cash sales are recorded at the end of each week. All sales on account are subject to terms of 2/10, n/30. All purchases on account are subject to terms of 3/15, n/30.Totals of the Special Journals should be posted to the General Ledger weekly.

Instructions

  1. Post the balances from the trial balance to the appropriate General Ledger accounts.
  2. Post the balances from the accounts receivable and accounts payable totals for Nov. to the ledgers.
  3. Post all transactions for December to the appropriate journals and ledgers.
  4. Prepare a trial balance for December.
  5. Prepare a schedule of accounts receivable and accounts payable for the end of December.
  6. Journalize and post the adjusting entries based on the following information.
  8. Allowance for Doubtful accounts should be 10% of total accounts receivable for the

year.

  1. Inventory at December 31st is:
    • Computers $123.879.41
    • Other computer equipment    97,359.22
    • Office supplies         42
    • Store supplies 2,768.39
  2. Insurance expired December 31st        3,275.00
  3. Depreciation is straight line
    • Building    16,750.00
    • Office Equipment      3,111.00
    • Store Equipment         00
  4. Accrued Salaries:
  • Sales Salaries      3,147.00
  • Officers’ Salaries      1,500.00
  • Office Salaries         00

 

  1. Prepare financial statements for year end
  2. Journalize and post-closing entries
  3. Prepare a post-closing trial balance

Many researchers praise the benefits of participative budgeting. Is it wise to involve multiple parties at multiple levels in the organization in the budget preparation process? In what ways can participative budgeting be used when creating a master budget for an organization?

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Participative budgeting

Many researchers praise the benefits of participative budgeting. Is it wise to involve multiple parties at multiple levels in the organization in the budget preparation process?

In what ways can participative budgeting be used when creating a master budget for an organization?

Further, explore the different components of the master budget and assess how each is linked to form a cohesive financial plan for a company to follow.

How can participative budgeting make the master budgeting process more efficient and effective? Explain.