Answer:
The three primary sources of authority that tax professionals should check against the citator before relying on those sources for important matters are;
1. Revenue procedures
2. Revenue rulings
3. Judicial decisions
Explanation:
A citator can be defined as an index of legal resources that allows the researcher to find newer documents of the original document and thus the history of statues and cases can be reconstructed. This has been collectively termed as shepardizing. There are different kinds of citators depending on the type of case one is handling. In our case, we are dealing with tax professionals. Tax professionals deal with three primary sources of authority that tax professionals should check against the citator before relying on those sources for important matters. These primary sources are; revenue procedures, revenue rulings and judicial decisions. They are further elaborated below;
1. Revenue procedures
A revenue procedure is a set of guide that give direction on how to apply law, regulations and rulings. They majorly give direction on matters involving tax.
2. Revenue rulings
A revenue ruling is an order directly from the Internal Revenue Services (IRS) that has the full backing of the law and therefor enforceable. Such rulings on revenue, give direction on how the IRS understands the tax laws. Since the IRS is an authority constituted by top-level tax professionals, a revenue ruling can be used by other tax professionals to cite cases of similar nature.
3. Judicial decisions
Judicial decisions is a statement of advice written by a judge or a panel of judges that serves as a guide in solving a legal dispute. They involve a written legal opinion that tends to justify how and why they arrived to that conclusion to solve the dispute. The same thinking can be used by other professionals in other disputes of a similar nature to solve them.
Answer:
Effect on income= $0
Explanation:
<u>Because the company has excess capacity and it is a special offer that would not affect normal sales, we will not include the fixed costs.</u>
Effect on income= total sales revenue - total variable cost
Effect on income= 24*4,960 - (20 + 4)*4,960
Effect on income= $0
Answer:
The retained earnings should Quartz report at December 31, 2018 is $570,000
Explanation:
In this question, we apply the retained earnings equation which is shown below:
Ending retained earnings balance = Beginning retained earning balance + net income - dividend paid
= $390,000 + $220,000 - $40,000
= $570,000
The net income should be added while dividend should be deducted for finding out the ending retained earnings balance
Answer
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Complete Question:
What are the benefits of a long-term bond over a short-term bond?
Answer:
c. While long-term bonds have more risks associated with them, they have the potential to bring in higher returns for the initial investment.
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.
Bonds are generally debts, which may be floated in different ways with respect to the issuer of the bond and its type. Bonds are used by government and corporate institutions to borrow money with interest and they also have to pay for the face value of the bonds at maturity.
Bonds are classified into two (2) main categories and these are;
I. Long-term bonds: they usually spread over a long period of time and as such locking the money of an investor down while availing them a higher interest rate. Also, they are considered to be more riskier than shorter bonds.
II. Short-term bonds: this type of bond mature quickly and as such paying the investor's principal on time. It covers a period of one to five years maximum in duration.
Hence, the benefits of a long-term bond over a short-term bond is that, while long-term bonds have more risks associated with them, they have the potential to bring in higher returns for the initial investment.