### When should she pay the bill-this year

Assignment Help Taxation
##### Reference no: EM13514969

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?

#### Questions Cloud

 Calculate the effective coefficient of kinetic friction : A potter's wheel -- a thick stone disk of radius 0.500 m and mass 110 kg -- is freely rotating at 50.0 rev/min. Find the effective coefficient of kinetic friction between the wheel and the rag Define solid form of the two elements practically identical : Why are the Kr---Kr and intermolecular Br---Br distances in the solid form of the two elements practically identical. How would you expect the Br---Br distances in solid CBr4 to be related to the above distances Describe the contributions of ethnolinguistics : Ethnolinguistics studies "the relationships between language and culture and how they mutually influence and inform each other" How does transaction affect fedex ratio : How does this transaction affect FedEx's ratio When should she pay the bill-this year : 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? What is the charge on the outer surface of the conductor : An isolated conductor of arbitrary shape has a net charge of +11 x 10- 6 C. what is the charge on the outer surface of the conductor Define window glass is typically made by mixing soda ash : Window glass is typically made by mixing soda ash (Na2CO3), limestone (CaCO3), and silica sand (SiO2) and then heating to 1500 degrees Celcius to drive off Co2 from the Na2CO3 and CaCO3 Explain the caffeine is extracted and dissolved in water : A 16 ounce specialty coffee drink contains 216 mg caffeine. If all the caffeine is extracted and dissolved in an equal amount of water, what is the pH of the solution. What is the percent ionization. Determine the number of revolutions : Determine the number of revolutions through which a typical automobile tire turns in 1 yr. Suppose the automobile travels 13000 miles each year on tires with radius 0.260 m

### Write a Review

#### Prepare a tax research memo

Prepare a tax research memo to the file that addresses the issues you feel are most relevant to Mimi's various issures.

#### Tax planning strategy

Show whether this tax planning strategy is advisable for Donna Noble. Find what are two other strategies that she could also consider?

#### Questionsuppose that you work for the internal revenue

questionsuppose that you work for the internal revenue service and congress has tasked you with developing changes to

#### Cost - volume - profit analysisarrange contribution margin

cost - volume - profit analysisarrange contribution margin income statements.western travel uses contribution margin

#### Explain the hong kong profits tax implications

Discuss the Hong Kong tax implication of the profits earned by Trouble Ltd in respect of the sales made to the Hong Kong customers through Marfan Ltd.

#### 1 john purchases an office building march 15 2013 to us in

1 john purchases an office building march 15 2013 to us in his computer consulting business.nbsp the price of the

#### Compute crodyens taxable income

Under the UNICAP. Rules,Coryden had no capitalize \$ 142,800 of administrative wages to inventory . These wages were expected for financial statement purpose.

#### What was the firm net income after taxes in 2011

It has an average tax rate of 34 percent. What was the firm's net income after taxes in 2011?

#### Prepare the journal entry to record the issuance of the bond

On May 1, 2011, Newby Corp. issued \$600,000, 9%, 5-year bonds at face value. The bonds were dated May 1, 2011, and pay interest semiannually on May 1 and November 1. Financial statements are prepared annually on December 31.

#### Unemployment compensation taxes

the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, \$35,000 is subject to unemployment compensation taxes

#### Find calculation and payment of company tax

There are no complex corporate transactions in this practice set beyond the calculation and payment of company tax. No dividends were paid during the period and tax effect accounting is beyond the scone of this nractice set.

#### Should fvs return on a cash or accrual basis

Advise FVS what income is derived and when - what tax consequences follow on default and what is the tax treatment of the trading stock the subject of a lay-by?