Instructions_Tax_Memo_2[1] - TAX MEMORANDUM #2 DUE DATE...

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TAX MEMORANDUM #2 DUE DATE Submit the memorandum to the Dropbox by the close of Week 6. ASSIGNMENT Write a memorandum addressing each of the three issues listed below. The memorandum should be no less than one page and no more than three pages in length. FACTS Mr. Kim is the sole shareholder and CEO of KimTech, Inc., a technology company valued at approximately $5,000,000. KimTech is a C corporation for federal tax purposes. In 2007, KimTech had net pretax profits--before deducting Kim's compensation--of $1,000,000. After deducting Kim's base salary of $100,000 and bonus of $800,000, the company was left with a small after-tax profit, which was retained by KimTech (i.e., no dividends were paid to Kim). KimTech has two other officers, a CFO and a VP of Sales and Marketing, each of whom received salaries of $100,000 and no bonuses. Kim's bonus was awarded by the board of directors, which consists of three directors: Kim, who serves as Chairman, the CFO and the VP of Sales and Marketing. In determining Kim's bonus, the board multiplied pretax
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This note was uploaded on 12/05/2010 for the course AC AC 553ON taught by Professor Bullock during the Spring '10 term at Keller Graduate School of Management.

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Instructions_Tax_Memo_2[1] - TAX MEMORANDUM #2 DUE DATE...

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