Identify five tax planning concepts.
> What deduction does Section 162(a)(2) specifically authorize? What Code provision in another section disallows some of those deductions? Explain.
> Use a tax service such as “United States Tax Reporter”, to answer the following questions: a. Assume a public university provides a $20,000 athletic scholarship to an athlete to cover tuition, books, a computer, and extra tutoring costs, does the athlete
> Illustrate the potential use of data analytics for an accountant using a legal database.
> Find the legal case SEC v. Wyly, 56 F. Supp. 3d 260 (S.D.N.Y. 2014) [Note that chapter 7 discusses case citations]. Discuss the court’s decision in that case.
> Locate and identify two recent Accounting and Auditing Enforcement Releases by the SEC that address fraud. Explain how you conducted the research.
> Find the title of a recent article from the Journal of Accountancy that discusses “money laundering.”
> Go to the Global EDGE resource desk and identify at least two international business resources recommended for statistical sources.
> Assume that the taxpayer has a tax issue in which the only authorities on point are the following: (a) an unfavorable circuit court of appeals case from the same circuit as the taxpayer’s residence and (b) a favorable decision from a district court in
> Joseph Josephs, CPA is auditing the Elder Company’s current year’s annual financial statements and notices that the Company has violated the 2.1 to 1.0 current ratio requirements as part of its debt agreement with the Sunshine Bank. The company’s curren
> Locate a revenue ruling that defines a married couple. What is the citation for that revenue ruling? How and why does the revenue ruling define a married couple?
> Find the industry ranking in the music business. Who are the largest three companies in the music industry? What database did you use? Provide a financial comparison of these three companies.
> What does the Statement of Federal Financial Accounting StandardNo.49discuss? When was Standard No.49 promulgated? What was the purpose of the Standard?
> What is the title of GASB Concept Statement No. 6? What is the purpose of the reporting discussed in the Concept? When was GASB Concept Statement No. 6 last modified?
> Summarize what tax was at issue in the Direct Marketing Association case mentioned in this chapter. Explain what happened on its appeal to the Supreme Court. Provide a proper citation including both the Supreme Court’s decision and the 2016 decision in t
> Find the title of GAAP Concept Statement No. 5. What is the purpose of the reporting discussed in the Concept? When was this Concept Statement last modified?
> Locate Ballard v. Commissioner, 544 U.S. 40; 95 AFTR 2d 1302 (2005). What was the main issue before the Supreme Court? What did the Supreme Court do with the appellate court’s decision?
> Examine an analyst report on Ford Motor Company. Who wrote the report? Outline the major contents of that analyst report. Where did you find this analyst report?
> Find the growth rate for Yahoo! from January 2015 until it was sold to Verizon in 2016. What helps to explain the change in the company’s stock price during that time period?
> Locate the insurance company State Farm Group. Using an appropriate database available to you, summarize the key financial ratios that you can find on the company. Compare that information to any information provided on the company’s website.
> Hugo Crossman, CPA, issued a review statement for the CUNY Company for last year and a compiled statement for them in the current year. During the current year, Hugo purchased some CUNY securities, which made him lose his independence—a fact noted in his
> Examine the private company Uber, headquartered in San Francisco. Summarize the corporate history of Uber. What legal concerns does this company face? Where did you find this information?
> Find 2016 stock prices on one of the largest private equity firms, the Blackstone Group. How much did their stock price change during that year? Explain why. What sources of information did you use to find this answer? Why is information on this private
> Conduct a search to find the federal laws and regulations concerning the environmental liability disclosure requirements for Chevron. List the major items. What database and parts of the database did you used to locate the information?
> Find the name of the major professional accounting journal published by the AICPA. Locate the two most recent articles in this journal using the keyword “derivatives.” Give the citation for these articles using APA style. Summarize each article in a sent
> Use a commercial database to examine IBM’s first footnote in its financial statements for 2016. Compare and contrast the advantages or disadvantages in assessing IBM from a commercial database as compared to using the SEC website with its EDGAR database.
> Use the topic guide in an article index database or legal database. Research “Theranos.” Explain the rise and fall of this company.
> Find the profitability ratios for the bank Wells Fargo for the most recent year. Provide an analysis of what these ratios indicate for Wells Fargo’s operations and use of its assets. How has Wells Fargo performed since 2015, a year before its management
> What financial ratios are provided in the Mergent Online database? Compare (identify the similarities) and contrast (identify the differences) in this result to the financial ratios presented in S&P Capital IQ.
> Conduct research to describe a major financial fraud that the SEC announced in the first half of 2016 and find a recent case involving cyber fraud or fraud that used technology. What database and parts of the database did you use?
> Find the company Alexander & Baldwin. Write a one sentence explanation describing Alexander & Baldwin’s business. Identify the company’s top competitors. Identify the databases and parts of the database that you used.
> Merrill Corporation engages in a valid cash flow hedge where it minimizes the risk from variable interest rated debt by promising to issue dividend payments from both its own portfolio and its portfolio of “outside” marketable securities. Since interest
> Review Walmart’s financial reports for the last three years, and perform a ratio analysis of them. In one paragraph, discuss the company’s financial situation. What databases and parts of that database did you use to find the answer?
> What is the most recent exposure draft or accounting standards update for accounting for derivatives? What database helped you find an answer?
> Given that GASB is related to FASB through their common oversight board, research GASB’s plans for its hierarchy of accounting sources. Identify where you found that information
> What exposure drafts are currently available from the FASAB?
> Describe the qualities establishing sophisticated analysis and reasoning in a tax research memo.
> What role does professional judgment play in the daily activities of the accountant or auditor?
> Discuss the structure of a tax research memo, as shown by the typical subheadings.
> Explain the AICPA’s Conceptual Framework that is incorporated into the Code of Conduct.
> Discuss how to use Checkpoint® to find relevant cases.
> Explain the difference between data-mining software and public databases
> The Rich Company seeks to limit its potential exposure from future variable-interest debt by engaging in a cash flow hedge. Thus, it seeks to acquire a financial instrument that varies in price “in opposition” to Rick’s expected payments on this debt in
> What documentation is needed in the research process?
> Differentiate between auditing standards and auditing procedures.
> Explain the differences between a Treasury Regulation and a Revenue Ruling.
> Define fraud and identify four examples of fraud.
> How are keywords used to evaluate and collect evidence?
> Explain two ways to collect evidence.
> Define an attest engagement. Is an audit engagement an attest service?
> Springer & Jones, CPAs, LLP, is currently auditing Worldwide Electronics Inc. that manufactures electronic equipment utilized around the world. The audit client purchases in bulk large quantities of various inventories of stock material to produce variou
> Young & Co., CPAs is auditing Express Inc. for the current year. Express Inc. has thousands of purchase orders each month. The CFO in discussion with the auditors raised the concern whether certain employees are utilizing company purchase orders to obtai
> Tony Computer Services Corporation trades 50% of its common stock for the rights to certain computer programs of the Janet Corporation. Janet previously expensed such costs of developing these computer programs. Tony concurrently sold the other 50% int
> Where are financial ratios found in the LexisNexis databases: Lexis Advance® or Nexis Uni™?
> Besides going to review sites such as Yelp, how should one research whether a local construction company is reliable to remodel one’s house?
> Conduct an Internet search about the Audit Analytics database. Give an example of how one can use the potential analysis through this database.
> How should one research government accounting?
> JB Company recently acquired 100% of Sampson Company for $150,000 cash. Both companies are located outside of the United States and JB needs to prepare consolidated financial statements. JB provided the following information regarding the Sampsonâ&
> Northwood Industries, a U.S.-based public company, has two subsidiaries located in Europe. These two subsidiaries are required to prepare their individual financial statements in accordance with IFRS. Northwood, contemplating that the SEC will soon requi
> Zimmer Chemical Co. has chemical manufacturing facilities around the world. Recently, Zimmer erected a new facility in South Korea at a cost of $48 million and plans to operate the new facility for a period of fifteen years. The South Korean government r
> Taxpayer is a securities firm. Taxpayer uses the accrual method of accounting. Taxpayer executes stock trades and performs settlement functions. Settlement functions include recording the sale and confirming it with the customer. Trades made on Decembe
> Xco an accrual basis taxpayer has various lines of businesses. One business is a gas station. The land underneath the gas station was not contaminated when Xco purchased it. However, the land now has potential soil and groundwater problems (environmenta
> Hidetoshi was a world-renowned rock star from NewCountry. Sony-USA Records contracted with Hidetoshi to produce records. Sony-USA Records retained all intellectual property rights in the recordings. The contract granted Hidetoshi payments or “royalties”
> Mary Howard, CPA, has long audited the Wheat City Grain Company’s financial statements. Much of Wheat City’s assets consist of wheat stored in three of its grain elevators, and the Company maintains perpetual inventory records of the quantity of wheat s
> Sylvia is a professor in business at the University of Hawaii. She went on sabbatical for an academic year to take courses in Chinese at National Taiwan University in Taipei, Taiwan, to expand her knowledge of international business and ability to conduc
> For the past two years, Minsu, a Korean American, worked as a high school physical education teacher. He was also a body-builder and a part-time graduate student in educational technology at State University. As part of preparing a master’s thesis, Mins
> Stacey became an employee of DotGismo, Inc., a privately held firm. On December 15, 20X3, Stacey was allowed to buy 20,000 shares of DotGismo stock for $40,000 dollars. At that time when Stacey bought the stock, each share was worth $2. DotGismo retains
> Can firms capitalize research and development costs under IFRS? If so, in what circumstances? Provide specific citation to support your answer.
> Use the glossary to locate the definition of a contingent liability. a. What is the definition? b. What standard is the definition found in?
> Use e-IFRS to determine how the accountant would conduct an impairment test for long-lived assets. a. Which authority describes the impairment test? b. What process did you use to find the authority? c. Briefly explain the impairment test.
> Use e-IFR Sto identify the accounting authority (citation) governing each of the following: a. Customer loyalty programs b. Operating lease incentives c. Operating segments d. Treasury share transactions e. Agriculture
> Open up an IAS or IFRS. a. What are the major organizational parts of the authority (placed in bold)? b. Compare your answer in (a) to the major organizational parts of an IFRIC or SIC. c. Are (a) and (b), for the most part, the same? If yes, how so? I
> How many IFRICs have been issued?
> Open IFRS1: First Time Adoption of International Financial Reporting Standards. a. Which authority does this replace? b. Briefly summarize the introduction to paragraph 4.
> The Treasury Department of Drof Motors invests “excess” funds daily (e.g., in foreign currencies). It, thus, earns profits and losses, which are included in the company’s consolidated financial statements. Should Drof consider its Treasury operations a
> Access the IESBA website (www.ethicsboard.org). Click on Projects and list three active projects and three 2009 completed projects.
> a. In 2017, Congress debated repealing Dodd-Frank. What were four major provisions in Dodd-Frank that impacted corporate governance? b. Has Congress repealed Dodd-Frank? How else could a roll-back on the law occur?
> a. Identify the three largest companies in the worldwide automobile industry. What is the source for your listing and what is size based on (market cap or number of automobiles sold or some other dimension? b. Examine the SEC filings for Tesla in 2016.
> a. Identify the five largest “Fortune 500” companies for 2017. b. Identify the primary basic industry for the fifth largest company. c. What does the company identify as its core business segments? d. Where is this company headquartered? e. Provide t
> In 2015, the proxy vote for Apple’s annual meeting had six proposals: 1. The election of the directors, 2. The ratification of the auditor, 3. An advisory vote on executive compensation (“say on pay”), 4. An amendment to the employee stock purchase
> The Heather Company’s fiscal year ends on June 30. Its employees (with at least three months of experience) are entitled to 12 paid sick days annually for each calendar year beginning on January 1. An employee not taking his/her earned sick days would
> What is included in CCH® Accounting Research Manager?
> Access the Association of Certified Fraud Examiners website (www.acfe.com), and: a. List three qualifications for becoming a CFE. b. List three items located in the ACFE’s resource library.
> Identify the topic of the following Treasury Regulations, Revenue Rulings, or Revenue Procedures: a. Treas. Reg. 1.385-4T e. Rev. Proc. 2017-29, 2017-14 I.R.B. 1065 c. Rev. Rul. 68-609, 1968-2 C.B. 327
> List the following topics for IRS Publications or Form: a. IRS Publication 17 b. IRS Publication 334 c. Form 941
> List the major Code section for the following topics: a. Charitable deductions b. Accrual accounting for deductions c. Foreign income exclusion
> Identify the general contents of each of the following subchapters and parts of the Code: a. Subtitle A, Chapter 1, Subchapter O b. Subtitle C – employment taxes c. Subtitle F, Chapter 67, Subchapter B
> Identify the general content of each of the following Internal Revenue Code sections: a. §274(d)(1) b. §751(b)(3)(A) c. §1221(a)(7)
> You are auditing the financial statements of Air Service Inc., an airplane wholesaler that purchases various types of corporate jets for sale to different companies or individuals. Prior to the sale of an airplane, Air Service utilizes the jet for chart
> In auditing Crispy Inc., the auditor has determined that certain information that is not required by an applicable financial reporting framework, has been included in the company’s basic financial statements which is clearly differentiated and identified
> Alex Curtis, during the audit of Landon Company, has determined that the company will be preparing its financial statements on a liquidation basis of accounting due to the fact that management has decided to liquidate Landon Company at the end of the fir
> After the Julie Company issued its previous years’ financial statements, it noticed that it incorrectly calculated depreciation expense and, thus, disclosed this fact as a prior period adjustment in its current years’ financial statements. (This differe
> Johnson & Young, LLP have been requested to be the auditors of Payroll Inc., an outside service company that processes payroll for over 200 clients. In considering the request, Johnson & Young are concerned that they might be required to be independent o
> Gates Inc. has its reviewed interim financial information included with the audited financial statement. However, after the review the auditor believes that the interim financial information is not prepared in accordance with an applicable financial repo
> In year 1, Joe Josephs, CPA, reviewed Lander Company’s financial statements. However, in year 2, the Lander Company hired Tom Holstrum, CPA, to audit its financial statements. Should Tom meet with Joe, and would Joe be considered as a predecessor audito
> Horizons Inc. has agreed to sell an investment in a subsidiary that has been accounted for on the equity method of accounting to a minority stockholder in exchange for the stockholder’s share in Horizons. Since the fair value of the investment exceeds it
> Albright Inc. has recently issued a 10% stock dividend to its existing stockholders. As a result of the issuance of the stock dividend the market price of the stock declined 25%. Albright has requested your assistance as to treating this stock dividend a
> Alex Corporation is planning this year to present comparative income statements but only the current year’s balance sheet. James Johnston, president of Alex Corporation requests your advice as to whether comparative cash flow statements for both the curr
> The Bootsie Holding Company has sales exceeding $10 billion and each of its three, wholly-owned subsidiaries has sales exceeding $2 billion. Three years ago, the subsidiaries had “complex” capital structures—until Bootsie acquired them. Bootsie’s annua
> In order to help induce Jill Gregory to remain as president of the Reed Company, in 2000 it promises to pay her (or her estate) $200,000 per year for the next 15 years—even if she leaves the company or dies. Reed wants to properly record this transactio
> James Olds buys a four-year, $1,000,000 certificate of deposit from the Second National Bank. James will receive 5% interest in year 1; 5.5% in year 2; 6% in year three; and 6.5% interest in year 4. If James “redeems” this certificate before the maturi
