Giuseppe guarneri was a skilled violin maker

Assignment Help Accounting Basics
Reference no: EM13524790

FACTS:
George Muzak is a celebrated violinist with the Los Angeles Philharmonic who recently acquired an early eighteenth century violin constructed by Giuseppe Guarneri (1) for $70,000. George intends to play upon the violin to earn his living and he believes that over time it will reflect the wear and tear of daily use. Its value as a performance instrument, therefore, should decline. Its value as a collector's item, however, is
likely to increase due to a flourishing market among non-musicians for early eighteenth century stringed instruments. As non-players, collectors of these pieces do not concern themselves with the physical condition or tonal quality of an instrument; rather their interests lie solely in the appreciating prices
which such items command in the antique market. George estimates that as a collector's item, the violin may be worth as much as $120,000 in five years.
As a musician who will play upon the violin as his livelihood, George believes he is entitled to treat it as an asset used in his trade and, hence, to claim depreciation deductions against its cost. Another musician with the Houston Symphony, however, has told him otherwise.

ASSIGNMENT:
Use Checkpoint to research the tax situation of George Muzak. After completing your research, prepare a memo for the tax files. Include in your memo:
1. The client
2. Relevant facts
3. Specific issues
4. Conclusions
5. Support
6. Actions to be taken
7. Preparer
(1) Giuseppe Guarneri was a skilled violin maker who lived in Italy from 1687 to 1745 and his violins are widely regarded as second only to those of Antonio Stradivari.

Reference no: EM13524790

Questions Cloud

Taxable income for calzone trucking company : Calculate the 2014 taxable income for Calzone Trucking Company. Indicate the amount and the effect of any carryforwards or carrybacks on Calzone Trucking's current, past, or future income. Show and label all of your work.
Expalin state of ammonia at normal atmospheric pressure : Predict the physical state of ammonia at -95 degrees C (mp =-77degrees C, Bp =-33 degrees C) and normal atmospheric pressure.
Beliefs in everyday life : Describe a belief that you would continue to believe even if solid logical evidence was supplied which demonstrated your belief could not possibly be true.
Explain what is the molarity of aqueous lithium bromide : What is the molarity of aqueous lithium bromide if 25.0mL of LiBr reacts with 10.0mL of 0.250M Pb(NO3)2
Giuseppe guarneri was a skilled violin maker : (1) Giuseppe Guarneri was a skilled violin maker who lived in Italy from 1687 to 1745 and his violins are widely regarded as second only to those of Antonio Stradivari.
Explain what is the mass and mass percent concentration : If 10.0mL of blood plasma has a mass of 10.279g and contains 0.870g of protein, what is the mass/mass percent concentration of the sample?
Explain what is the molar strength of the acid : You are asked to determine the strength of an acid by titration with NaOH. Exactly 50.0 ml of the acid are titrated with 0.300M NaOH and the equivalence point is reached at exactly 20.0 ml of NaOH. What is the molar strength of the acid
Draw the bom for the table : 2. A table is made from one tabletop, four legs, and four hangers. Each of the legs is made from 4 feet of hickory wood and 1/4 gallon of varnish. Each of the hangers is made from a brace and 4 bolts and 4 nuts. Draw the BOM for the table.
What is the speed of the rocket just before it hits ground : A model rocket blasts off and moves upward with an acceleration of 13 m/s^2 until it reaches a height of 27 m, What is the speed of the rocket just before it hits the ground

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Trauscht corporation has provided the following data from

trauscht corporation has provided the following data from its activity-based costing system the company makes 360 units

  Illustrate out the term cvp analysis why is this an

illustrate out the term cvp analysis? why is this an important analysis for a company to

  Change in owner equity during year

Stahl Consulting started the year with total assets of $20,000 and total liabilities of $5,000. During the year, the business recorded $16,000 in catering revenues and $8,000 in expenses.

  What would is the total amortization expense

Ted bought a copyright in the current year for his business. Purchased the copyright on July 15th for $78,000. The remaining life on the patent is 75 months, what would is the total amortization expense he could deduct during the current year..

  Mortgage according to the loan agreement

You borrow $165,000 to buy a house. The mortgage rate is 7.5 percent and the loan period is 30 years. Payments are made monthly. If you pay the mortgage according to the loan agreement, how much total interest will you pay?

  Discussing factors to consider when choosing accounting

Prepare a memo discussing the factors to consider when choosing accounting software. Be sure to discuss why each factor is important, as well as the risks of not considering each factor.

  Determine wilma taxable income

Wilma is a widow, age 80 and blind, who is claimed as a dependent by her son. During 2009, she received $4,800 in Social Security benefits, $2,200 in bank interest, and $1,800 in cash dividends from stocks. Wilma's taxable income for 2009 is:

  Write a memorandum to bob explaining the tax consequences

Write a memorandum to Bob explaining the tax consequences of the incorporation. As part of your memorandum examine the possibility of having the corporation issue common and preferred stock and debt for the shareholder's property and money.

  Prepare an income statement for the year 2011

The CPA firm you are working for has just taken on a new client. The firm has just learned that the new client will soon be on the cover of a well-known magazine, the firm is very concerned the work they produce is outstanding in every aspect. Tha..

  Social trends in corporate taxation

Current social trends in corporate taxation have a tremendous impact on how corporations run their business activities. For instance, tax liabilities will affect where a corporation runs its activities-in the United States or in a foreign country-..

  Calculate the firm-s eva and mva

Calculate the firm's EVA and MVA for 2005. Assume that Cumberland had 10 million shares outstanding that the year end closing stock price was $17.25 per share, and after tax cost capital was (WACC) 12%.

  What was the average annual rate of return on long-term

what was the average annual rate of return on long-term government bonds 30-year treasury bonds during the period 1984

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd