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Problem
You are a recent graduate of Columbia Law School who finished in the top ten percent of your class. Your lifelong passion is to preserve the environment. Consequently, you hope to practice environmental law when you graduate. In the meantime, you have over $100,000 of student loans that you have to start paying back six months after graduation. You have interviewed with several environmental law firms, all of which are offering starting salaries averaging $63,000. You also interviewed with XYZ Chemical Corporation, an organization that is not exactly sympathetic to environmental concerns. But, XYZ offers you a job as its in-house counsel at a starting salary of $157,000 per year. So, you are confronted with deciding whether to swallow your desire to defend environmental concerns and take the higher paying job with XYZ. If you take the job, one of your duties with XYZ is to go to court and get restraining orders against environmental protesters - many of whom are friends of yours (or were), who are as passionate about saving the environment as you are.
Task
1. Come up with at least two reasons why you would accept XYX's offer.
2. Come up with at least two reasons why you would reject XYX's offer.
3. Discuss which was the easier position for you to argue and why, and discuss how an agent's duties to a principal affected your ultimate decision.
Determine taxable income before considering expense.
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Prepare the required journal entry to record the tax expense
Calculate Barb's taxable income? What nonrefundable credit is Barb eligible for based on the information you have?
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