When should she pay the bill-this year or next

Assignment Help Taxation
Reference no: EM13905576

Isabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December she received a $20,000 bill from her accountant for consulting services related to her small business. Isabel can pay the $20,000 bill anytime before January 30 of next year without penalty. Assume her marginal tax rate is 40 percent this year and next year, and that she can earn an after-tax rate of return of 12 percent on her investments. When should she pay the $20,000 bill-this year or next?

Reference no: EM13905576

Questions Cloud

What is the required magnetic field : A cyclotron with a radius of 1.0 m is to accelerate deuterons to an energy of 12 Mev. what is the required magnetic field and what frequency is needed for the voltage between the dees ?
Should manny send his client the bill in december or january : Assume Manny's marginal tax rate is 40 percent this year and next year, and that he can earn an after-tax rate of return of 12 percent on his investments. Should Manny send his client the bill in December or January?
Which bright future : Which Bright Future? Should Cree pursue LED backlighting, general lighting, or both? How do the technology and industry forecasts factor into your market choice? How is your choice affected by Cree’s internal capabilities and the kind of capabilities..
Vp-operations for one plant of major home appliance producer : Your immediate superior on your new job is VP-Operations for one plant of a major home appliance producer. Her responsibilities cover over 8000 WIP and Raw Materials items used in making home appliances. In arriving at your recommendation consider bo..
When should she pay the bill-this year or next : Assume her marginal tax rate is 40 percent this year and next year, and that she can earn an after-tax rate of return of 12 percent on her investments. When should she pay the $20,000 bill-this year or next?
Draw a use case diagram for the webapp : Draw a use case diagram for the WebApp described in the above scenario. The use case diagram is to be submitted on paper
What if congress passed legislation that increased tax rates : What if Congress passed legislation that increased tax rates next year? Should Tesha ask the company to change its policy this year?
Quantitative analysis-what type of decision is ken facing : Kenneth Bown is the principle owner of Brown Oil Inc. After quitting his University teaching job, Ken has been able to increase his annual salary by a factor of over 100. For example is Ken purchases Sub 100 and if there is a favorable market, he wil..
Compare and contrast realism and idealism : Compare and contrast realism and idealism

Reviews

Write a Review

 

Taxation Questions & Answers

  Advise brain of the tax consequences arising from the sale

Advise George in each of the above situations as to his tax liabilities. Also advise him as to whether his receipts are income or capital on general principles.

  What is the constructive receipt doctrine

What is the constructive receipt doctrine? What types of taxpayers does this doctrine generally affect? For what tax planning strategy is the constructive receipt doctrine a potential limitation?

  Effect of year-end bad debt adjustment on before-tax income

What is the appropriate balance for the Allowance for Doubtful Accounts at year-end and show how accounts receivable would be presented on the balance sheet - what is the dollar effect of the year-end bad debt adjustment on the before-tax income?

  Prepare partnership return for lawson and norman enterprises

Prepare the Partnership Return for the Lawson And Norman Enterprises for the year of 2013 and Schedule K-1 for both partners.

  Determine emily’s itemized deductions

determine Emily’s itemized deductions. Which of these items can and cannot be listed as medical deductions? Why? What is her 2011 taxable income?

  Implications in relation to the taxability

Advise the directors as to the Hong Kong profits tax implications in relation to the taxability of profits of the Korean Company, as well as the profits accruing to the Hong Kong entity involved.

  Calculate the capital gain under the 50% discount

Calculate the capital gain under the indexation method, calculate the capital gain under the 50% discount method and which method should be used in this case

  Determine the tax consequences for edith

Explain to Edith the tax consequences for herself, her husband, and her children, of the gift of the shares to each member of her family. State the immediate tax consequences

  What amount should sharp report current income tax payable

There were no deferred income tax rate was 35% in 2009 and 40% thereafter. In its 2011 balance sheet, what amount should sharp report as current income tax payable?

  Updike and patterson investments inc upi hold equity

updike and patterson investments inc. upi hold equity investments with a cost basis of 250000. upi accounts for these

  How would vickis assets be recorded for tax purposes

How would Vickis assets be recorded for tax purposes by Palm Corporation and what is the amortization amount for each intangible asset in the current year?

  What is the lease after-tax present value

The present value of an ordinary annuity of $1 per year at 10% for two years is 1.74. What is the lease's after-tax present value using a 10% discount factor?

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