What role should an accountant take
Given the importance of proper system development, what role should an accountant take in a development project?
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Suppose that John has been offered a job in New York City at a salary of $100,000 per year. Currently, John lives and works in the Midwest at a salary of $70,000 per year.
Linda, age 37, who files as a single taxpayer, had AGI of $280,000 for 2013. She incurred the following expenses and losses during the year. Medical expenses before the 10%.
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On December 31,2011 , Ace Management Co. prepared an adjusting entry to accrue $9800 of earned but unrecorded rent revenue. On January 20, 2012, Ace received rent payments in the amount of $15,000.
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BNC Inc., a closely held corporation, was organized in 1987. To date, it has accumulated over $10 million after-tax income. This year, BNC's taxable income is $750,000 and its federal tax is $255,000.
When the IRS classifies a portion of a salary payment to a shareholder/employee as a constructive dividend, which party (the corporation or the shareholder) bears the economic burden of the tax consequences?
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